What is Difference Between Straight Through Processing and Market Maker Indices Trading Account in Indices Trading?

STP Account Indices Trading vs Maker Indices Trading Account

STP Indices Trading Accounts

STP Indices Trading Account stands for Straight Through Processing, the STP Indices Account brokers will send client orders direct to their Indices Trading Liquidity Provider, the Indices Trading Liquidity Provider is a large bank with deep liquidity that's required to trade on the inter-bank network.

An STP Indices Trading Account provided by an STP stock indices trading broker can either have one Indices Trading Liquidity Provider or many liquidity providers.

The best thing about STP Indices Trading Accounts is that stock indices traders can place their stock indices trades immediately with instant execution because they have access to interbank markets via their STP stock indices trading broker.

STP Indices Accounts will not charge commissions, but will charge spread on stock indices trades. Because traders have access to inter-bank market execution, there's no re quotes on the indices orders neither any trade order waiting for execution, order execution is instant.

MM Accounts

Market Maker Indices Trading Accounts are indices broker accounts where Market Maker indices brokers have a dealing desk execution model where they can match the orders in house without going to the stock indices market.

Indices Trading orders can also be executed against their traders - meaning the broker can take the opposite side of a traders open trades.

This stock indices trading broker can make the decision to either execute a stock indices order that is the opposite of a indices trader's order thus if the trader makes a loss the broker makes a profit, & if indices trader makes a profit the broker makes a loss.