Providers of contracts for difference and foreign exchange trading can be distinguished on the basis of the scope of the licence granted by the supervisory authorities. Companies that were classified as securities trading banks (new: MiFID investment firm) until the introduction of the IFR/IFS are permitted, among other things, to conduct proprietary trading ("dealing on own account") and thus to have their own order book (A-book, B-book). This fact, which requires a licence and is accompanied by increased capital requirements, enables companies to act as market makers and thus as counterparties for the trading business with the end customer. Financial service providers that do not hold a 'large' (C3, 750K) licence are obliged to forward customer orders for execution. The term straight-through processing ("STP") is often used in this context. Financial service providers acting as white-label or tied agents usually refer to one or more cooperation partners. You can find more information here or by clicking on the 'NCA' button in the company profiles.