It is a broker’s business model in which clients` orders are sent directly to one or several liquidity providers to be executed on their end. Liquidity providers include companies, banks or financial institutions that quote both buy and sell price in a financial instrument or commodity.
The more liquidity providers a broker has in general, the better execution for its clients will be (more liquidity available generally means less price slippage). What makes a true STP (Straight through processing) broker is that the STP broker doesn’t internalise the orders, but sends them to liquidity providers, acting as an intermediary between their client and the real market.
HOW DOES SV Trading MAKE MONEY? SV Trading NEEDS PROFITABLE TRADERS? WHY?
SV Trading receives a commission from its liquidity providers for each transaction.
We receive our liquidity from a wide range of liquidity providers around the world. Our system is designed to offer the best aggregated prices of our liquidity providers direct to our clients. When you open a new order, you get the best available bid (or ask) price which is available from our liquidity providers with our commission already included in the spread you see on the trading platform. Therefore we are interested in you trading more, and staying with us as our client. Therefore it’s in our interest that your trading is as profitable as possible.