When the playing field changes for you as a trader suspicion sets in and you start to wonder if your broker is not taking advantage of you. You have certain expectations when you go to place your order and now it just seems like you're not making email list any money and you feel as though your broker has pulled a fast one. So you start to look around for a better deal. You ask your trading colleagues and search the internet to make a change. So what now?
Where do you look? In your search you find the perfect broker for your specific needs. You read the hype and it seemed vaguely familiar but you need a home and they are telling you there are no requotes, off quotes or slippage. So you proceed to download their demo, and the spreads are amazing. Not only that but they have straight through processing and direct market access. The STP/ECN experience Your perception and faith is once again restored.
We always thought the STP/ECN model would finally put an end to cheating and if we ONLY could trade with a direct link to the market unlike those dirty rotten dealing desks we would be set to trade profitably and without intervention. Immediately you begin to notice slippage even though you were sold a bill of goods of no slippage. So why does this happen? Well you are getting a taste of the true STP/ECN environment.