STP Broker (Straight Through Processing)

An ECN broker routes client orders directly to liquidity providers via an electronic communication network, offering variable spreads and transparent pricing.

A liquidity provider is a financial institution or entity that supplies buy and sell quotes to brokers, enabling trade execution at competitive spreads.

The spread is the difference between the bid (sell) and ask (buy) price of a financial instrument, serving as a primary revenue source for Forex brokers and a basis for spread-based affiliate commissions.

A commission model in Forex IB programs where the introducing broker earns a portion of the spread (the difference between bid and ask price) on every trade their referred clients execute.

An Introducing Broker is a partner who refers new traders to a Forex or CFD brokerage in exchange for ongoing commissions, typically calculated on the trading volume or revenue generated by those referred clients.

A forex spread markup is an additional pip value added to the base spread by a broker, often used to fund IB commissions or revenue sharing.

A pip rebate is a commission structure where introducing brokers earn a fixed amount per pip of spread on each trade executed by their referred traders, with the broker adding a markup to the spread to fund the rebate.

A market maker broker acts as the counterparty to client trades, setting its own bid/ask prices rather than routing orders directly to the interbank market.