I already wrote once about the shady tactics of this company which claims to be a STP while offering fixed spreads. This is an oxymoron.
STP brokers will always display variable spreads because their liquidity is coming from several liquidity providers which in turn form a liquidity pool. Pricing in this pool is subject to supply and demand forces (Bids and Asks if you will) which result in fluctuating prices. Plainly speaking, STP and ECN brokers will always display variable prices and spread.
Market Makers will always display fixed spread from exactly opposite reasons – they determine Bid and Ask themselves, aren’t subject to market supply and demand forces, and therefore can offer a fixed spread. Fixed spread is the number one identifier of a Market Maker.
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Now, this honest NDD and STP (isn’t STP same as NDD?) broker is offering reduced spread on 6 majors and is offering only 1/2 pip spread. What a great deal…
The thing is, that as I said, this can’t be an STP broker, nor can you find anything about the identity of its ‘liquidity providers’ or even the management of this company. Their PR reeks of shady marketing efforts aimed at attracting noobs who have absolutely no idea what this actually means and all are looking for is lowest spreads possible. Try Googling reviews of this company and you’ll see what those noobs end is going to look like.
I would also suggest the Canadian authorities to investigate this company as I’m sure that false promises of STP execution aren’t going to be their only crime.
Update: A good friend alerted me that there is a broker with a similar name: investtech.com, this broker isn’t related to investtechfx in any way.