GBE Brokers is relatively a new broker based in Cyprus.
The company is an online Forex & CFD broker which offers complete STP trading environment.
There are hundreds of brokers in the world and so many of them are accused of making losses to its traders. But no one can really confirm if these brokers are working on a fraud or not.
If you are more interested in fairness and transparency, search is over, GBE Brokers is recommended for you.
What is STP?
STP is the abbreviation of “Straight Through Processing”.
This simply means that “all your orders are sent to the real foreign exchange market without any interruptions from the broker”.
Wait, isn’t that the Forex brokers’ job to do?
Yes, but not necessarily.
Because many brokers are also allowed to act as a market, but not a actual broker.
In the case, a broker acts as a market, your order will be stopped at the broker.
- STP Brokers Traders → Brokers → Forex Market
- Broker acts as a market Traders → Brokers
So, your orders don’t really go to the market, but being taken care by the broker by hedging(counter ordering) them.
Ok, so what is the “demerit” of “a broker being a market”
The point is that these brokers are counter ordering your positions.
Meaning that if you sell EUR/USD, the broker buys EUR/USD at the same time and the same quantity.
The results of this is the “conflict of interest” between traders and the broker.
So straight to the point, if you make a profit, the brokers will make a loss.
But the brokers will need to make profit of course, so they will:
- Set restrictions to some profitable trading methods
- Interrupt order executions
- Cancel profits with some made-up reasons
- and possible market price manipulation
So, basically trading with a complete “Market Maker” broker, means that you wouldn’t make profit at the end. Otherwise, the brokers will need to pay for your profit.
So only a few brokers are the 100% STP and others are “Marker Makers”?
No, not necessarily.
It is true that there is only a handful of complete “STP” brokers who really act as a broker, but not so many brokers are complete “Market Makers”.
So what are the majority of the brokers?
Well, they are half STP and half Market-Maker.
Meaning that many brokers change its business style (STP or Market Maker), depending on how profitable the trader is.
So if the trader is still a novice player, the broker may choose to hedge all orders so the broker will make money as much as the trader lose.
It is actually one smart business style and as far as I see, all the huge online Forex brokers adopt this way.
But still, in terms of transparency and fairness, they can’t beat these handful of STP brokers.
So who is the STP brokers?
Well, there are some in my mind, but let me introduce the one with better trading conditions among them, “GBE Brokers”.
How do you confirm if GBE Brokers is really a STP broker?
Well, there are many element to consider before making a judgement decision on STP brokers though.
Let me list up some points that you should focus on in order to find out the real STP brokers.
1. No Trading Restrictions
STP brokers do not hedge orders (counter order) at all. STP brokers only acts as a broker.
That means that there is no conflict of interest between traders and the brokers, so there shouldn’t be any restricted trading methods on its trading platforms.
GBE brokers allows any kinds of trading activities, and only thing which is prohibited is the “latency arbitrage” on CFD instruments.
2. Wider spread
This can be taken as a demerit of trading with a STP broker though, normally STP brokers has got wider spread or higher commission charge set.
It is because they only make profits from the spread(or the trading commissions) which traders pay.
STP brokers do not make profits if a trader just lose their funds by trading.
3. Unlimited Positive slippage
GBE brokers being a 100 % STP broker, eliminates all the possibilities of price manipulation and order rejections.
Thus, GBE brokers does not set limitations on “positive Slippages”.
The real benefit comes from the “STP”, but not from some cheap bonus promotions.
GBE Brokers Cash Back Bonus Promotion
One commonality among complete STP brokers is that they don’t offer any Bonus Promotions. (or they can’t afford it)
Already mentioned that “The real benefit comes from the “STP”, but not from some cheap bonus promotions” though, it feels a bit missing.
For the traders like you, there is a great News.
With GBE Brokers exclusively, you can receive 2.6 Euro on every 1 lot trading.
The cash back program is fully taken care by the broker itself, and you can receive the cash back amount directly to your trading account.
GBE Brokers with STP trading environment and the Cash Back Program.
Don’t miss out this opportunity!!
