Reviewing the credibility and security of Stptrading broker

STP Trading began operating in 2019, so at the time of writing it has a track record of less than 10 years. According to the broker, and as its name suggests, STP Trading executes trades using a straight-through processing model (STP/NDD),  meaning it receives prices directly from the market and liquidity providers. The broker states this explicitly in its legal document (Terms & Conditions).

 

However, the same legal document states that trades are conducted between the client and the company (Counterparty). In other words, this broker does not follow the STP model in an absolute sense. It should be noted, though, that this is common practice among brokers.

In terms of international credibility and legal oversight, this broker is only registered with offshore regulators (Mohéli and Saint Lucia), which naturally do not offer the legal and financial security of the world's top-tier brokers. Overall, although STP Trading has made dedicated services for Iranian users, such as Persian-language support and website, easily accessible, you should be cautious before placing full trust in it. We recommend that you review the broker's legal documents, research the protections and risks of these regulators thoroughly, and finally, contact the broker's support if you have any questions.

In the «Licenses and Regulations» section, STP Trading states that it holds a license from the Mwali International Services Authority (MISA) of Comoros and is registered in Saint Lucia. Below, we review these claims and examine the licenses mentioned.

 

MISA Mwali regulation

STP Trading was registered in 2023 as STP GLOBAL LTD in Mwali (Moheli) (MISA) under license number T2023280 with the domain https://www.stptrading.io/ . However, our check of the MISA Mwali regulator's website shows that, at the time of writing, this license has been suspended due to non-payment of the annual registration renewal.

 

Company registration with the Saint Lucia International Registry (St. Lucia)

The first point to note is that Saint Lucia is not a regulator; it is simply a body where companies register their details to establish a legal entity. Therefore, it provides no regulatory protection to brokers' clients. According to STP Trading's claim, the broker is registered in Saint Lucia as STP Trading LTD under registration number 2023-00081. Since the Saint Lucia registry's website does not provide data on registered companies, we examined STP Trading's registered address instead. The stated address is as follows:

Saint Lucia, Gros Islet, Rodney Bay, Satby Building

Notably, no building named Satby Building can be found on Google Maps. It appears to be a typo, and the intended address was likely The Sotheby Building  located in the Rodney Bay area.

 

This lack of transparency regarding the accuracy of the address stated on the website can be considered a negative point for STPtrading.

According to the claim made in STP Trading's legal document, the Risk Warning Disclosure, this broker keeps its clients' funds in segregated bank accounts, separate from the bank account in which the broker's own capital is held.


 

This broker also offers Negative Balance Protection to prevent traders from going into debt during extreme market volatility. Anti-margin call up to 70% is another service that the STP trading broker provides to its clients.

According to the information provided in its legal documents, STP Trading uses a straight-through processing (STP/NDD) model to execute trades. This is an order execution model in which client orders are processed without the involvement of a Dealing Desk, that is, without broker intervention, and prices are received directly from liquidity providers. In such a structure, rather than setting prices directly or intervening in order execution, the broker acts as an intermediary between the trader and the financial market, which can reduce the likelihood of conflicts of interest, unnecessary delays or price manipulation. For this reason, this execution model gives the trader a clearer view of the process of entering and exiting trades and also a greater sense of psychological security, since concerns about the broker directly interfering in trades are reduced.

However, as mentioned earlier, the Terms & Conditions section of STP Trading's legal documents states that trades are carried out between the client and the company acting as the Counterparty. Therefore, this broker cannot be considered fully consistent with a pure STP model. That said, such a structure is common among brokers, and for a more accurate assessment, a range of factors such as licenses, trading conditions and the way orders are executed should be examined.

Compliance with Know Your Customer (KYC) procedures and Customer Due Diligence (CDD) controls is one of the mandatory requirements for brokers within security frameworks, intended to prevent potential abuse. STP Trading's legal documents state that, before an account is opened and throughout the relationship with the broker, it carries out identity verification and customer due diligence checks in accordance with applicable regulations and the broker's own internal policies.


 

STP Trading also refers to a separate document titled AML Policy, whose stated purpose is to prevent the broker's services from being used for money laundering, terrorist financing or financial crime. In this document, the broker refers to applying a risk-based approach, customer identification, verification of the source of funds and transaction monitoring. It also stresses that if suspicious activity is observed, the matter will be investigated and, if necessary, reported to the relevant authorities.