Why TNXTrade is not an STP Broker
STP (Straight-Through-Processing) is one of the most commonly misinterpreted terms in the trading industry. Although it is often considered to relate to the execution that a client receives from their broker, STP is in fact a post-execution, post-trade communication process between executing counterparties with minimal impact on the speed or price of execution that a retail trader is offered. Though TNXTrade does use STP technologies, we classify ourselves as NDD in accordance to our method of order execution.
Why TNXTrade is not an ECN Broker
ECN stands for Electronic Communication Network and is frequently confused with NDD execution. However, ECN refers to the anonymous communication between executing counterparties which may, in fact, result in no guaranteed fills and worse pricing for the retail trader. TNXTrade is a true No Dealing Desk Execution broker, meaning that we execute client orders with no dealing desk intervention.