What is Difference Between STP and Market Maker Commodities Trading Account in Commodities?

STP Commodities Trading Account vs Maker Account

STP Commodities Trading Accounts

STP Commodities Trading Account stands for Straight Through Processing, STP Commodities Trading Account commodity brokers will send client orders direct to their Commodities Liquidity Provider, the Commodities Liquidity Provider is a big bank with deep liquidity to trade on the interbank net-work.

An STP Commodities Trading Account provided by an STP commodity broker can either have one Commodities Liquidity Provider or many liquidity providers.

The best thing about STP Commodities Trading Accounts is that commodities traders can place their commodities trades immediately with instant market execution because they have access to the interbank market via their STP commodity broker.

STP Commodities Trading Accounts will not charge commissions, but will charge spread on commodities trades. Because Commodities traders have access to the inter bank markets trading execution, there is no re-quotes on the commodity orders neither any trading order waiting for trade execution, the order execution is instant.

MM Accounts

Market Maker Commodities Trading Accounts are commodity broker accounts where Market Maker commodity brokers have a dealing desk where they can match trading orders in house without going to the online interbank commodities market.

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

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