A-Book Prop Firms 2026: STP/ECN Execution Models - Complete Guide
Understanding A-Book execution in prop firms is crucial for traders. This comprehensive guide explains A-Book vs B-Book execution models, which prop firms use A-Book execution (STP/ECN), and why execution models matter for your trading success.
A-Book Prop Firms 2026 - Quick Summary
Bottom Line: A-Book prop firms use A-Book execution (STP/ECN), where trades are sent directly to the real market through liquidity providers or exchanges. The broker acts as an intermediary, routing trades without taking the opposite side. This differs from B-Book execution where the broker acts as market maker. Most reputable prop firms use A-Book or hybrid execution models through their broker partners. Execution models are typically determined by the broker, not the prop firm itself.
A-Book execution is generally preferred by traders as it provides real market execution without conflicts of interest. However, execution models are usually not disclosed by prop firms, and the broker's execution model determines how your trades are handled.
What Are A-Book Prop Firms?
A-Book prop firms are proprietary trading companies that use A-Book execution, also known as STP (Straight Through Processing) or ECN (Electronic Communication Network) execution. In A-Book execution, your trades are sent directly to the real market through liquidity providers or exchanges.
How A-Book execution works:
- Your trade order is received by the broker
- The broker routes your trade to liquidity providers or exchanges (real market)
- The broker acts as an intermediary, not taking the opposite side
- The broker earns from spreads, commissions, or markups
- Your trade is executed against real market liquidity
Key characteristics of A-Book execution:
- Real market execution - trades go to actual liquidity providers
- No conflict of interest - broker doesn't profit from your losses
- Transparent pricing - based on real market prices
- STP/ECN routing - direct connection to market liquidity
- Broker earns from spreads/commissions, not your losses
Most reputable prop firms use A-Book execution through their broker partners. However, execution models are typically determined by the broker, not the prop firm itself. The prop firm provides the capital and structure, while the broker handles execution.
A-Book vs B-Book Execution
A-Book Execution (STP/ECN)
How it works:
- Trades sent to real market (liquidity providers/exchanges)
- Broker acts as intermediary
- No conflict of interest
- Broker earns from spreads/commissions
- Real market pricing
Advantages:
- Real market execution
- No conflict of interest
- Transparent pricing
- Better for scalping/fast trading
- More reliable execution
B-Book Execution (Market Maker)
How it works:
- Broker takes opposite side of your trades
- Broker acts as market maker
- Potential conflict of interest
- Broker profits when you lose
- Internal pricing (may differ from market)
Disadvantages:
- Conflict of interest
- Broker profits from your losses
- May have execution issues
- Less transparent pricing
- Potential for requotes/slippage
Important Note: Most brokers use a hybrid model, routing profitable traders to A-Book (real market) and less profitable traders to B-Book (internal). This is often not disclosed. Reputable prop firms typically work with brokers that use primarily A-Book execution or hybrid models that favor A-Book for funded traders.
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Which Prop Firms Use A-Book Execution?
Most reputable prop firms use A-Book execution (STP/ECN) through their broker partners. However, execution models are typically determined by the broker, not the prop firm itself. The prop firm provides capital and structure, while the broker handles trade execution.
Prop firms typically using A-Book execution:
- FTMO: Works with multiple brokers, typically using A-Book/STP execution
- FundedNext: Uses broker partners with A-Book execution models
- The5ers: Partners with brokers using A-Book/ECN execution
- TopStep: Uses regulated brokers with A-Book execution for futures
- Apex Trader Funding: Works with futures brokers using A-Book execution
Important considerations:
- Execution models are usually not disclosed by prop firms
- The broker determines execution, not the prop firm
- Most brokers use hybrid models (A-Book for profitable traders, B-Book for others)
- Reputable prop firms work with reputable brokers
- Execution quality matters more than the specific model
Recommendation: Focus on prop firms with good reputations and reliable payouts. Execution models are typically not disclosed, but reputable firms work with reputable brokers that use fair execution. If execution quality is a concern, ask the prop firm about their broker partners and execution models.
Why A-Book Execution Matters
No Conflict of Interest
A-Book execution eliminates conflicts of interest. The broker doesn't profit from your losses, so there's no incentive to interfere with your trading. Your trades go to the real market, and the broker earns from spreads or commissions, not from your losses.
Real Market Execution
A-Book execution provides real market execution. Your trades are executed against actual market liquidity, ensuring fair pricing and reliable execution. This is especially important for scalping, fast trading, and strategies that require precise execution.
Transparent Pricing
A-Book execution offers transparent pricing based on real market prices. You get fair spreads and execution without hidden markups or internal pricing that may differ from the market. This transparency helps you make informed trading decisions.
Better for Active Trading
A-Book execution is better for active trading strategies like scalping, day trading, and high-frequency trading. Real market execution provides the reliability and speed needed for these strategies, without the potential issues of B-Book execution.
How to Identify A-Book Execution
Identifying A-Book execution can be challenging, as most brokers and prop firms don't explicitly disclose execution models. However, there are some indicators:
- STP/ECN Labels: Brokers that explicitly advertise STP or ECN execution typically use A-Book
- Regulated Brokers: Regulated brokers are more likely to use A-Book execution
- Transparent Pricing: A-Book execution usually has more transparent, market-based pricing
- Execution Quality: Good execution quality (fast fills, minimal slippage) suggests A-Book
- Broker Reputation: Reputable brokers typically use A-Book or hybrid models favoring A-Book
Warning signs of B-Book execution:
- Frequent requotes or execution delays
- Wide spreads that don't match market conditions
- Execution issues during volatile markets
- Unregulated or unknown brokers
- Broker profits directly from your losses
Recommendation: Focus on prop firms with good reputations and reliable payouts. Execution models are often not disclosed, but reputable firms work with reputable brokers. If execution is critical for your strategy, ask the prop firm about their broker partners and execution models.
Frequently Asked Questions
What are A-Book prop firms?
A-Book prop firms are proprietary trading companies that use A-Book execution, where trades are sent directly to the real market (STP/ECN execution). In A-Book execution, the broker acts as an intermediary, routing your trades to liquidity providers or exchanges without taking the opposite side. This differs from B-Book execution where the broker acts as market maker and takes the opposite side of your trades.
What is the difference between A-Book and B-Book execution?
A-Book execution (STP/ECN) sends trades to the real market through liquidity providers or exchanges. The broker acts as an intermediary and earns from spreads/commissions. B-Book execution means the broker takes the opposite side of your trades (market maker model), profiting when you lose. A-Book is generally preferred by traders as it provides real market execution without conflicts of interest.
Which prop firms use A-Book execution?
Most reputable prop firms use A-Book execution (STP/ECN) or a hybrid model. Established firms like FTMO, FundedNext, and The5ers typically use A-Book execution through their broker partners. However, execution models are usually determined by the broker the prop firm uses, not the prop firm itself. Always verify execution models with the prop firm or their broker.
How can I tell if a prop firm uses A-Book execution?
Most prop firms don't explicitly disclose execution models. However, indicators of A-Book execution include: STP/ECN labels, regulated brokers, transparent pricing, good execution quality, and reputable broker partners. Ask the prop firm about their broker partners and execution models if this is important for your trading strategy.
Does execution model matter for prop firm trading?
Execution model can matter, especially for active trading strategies like scalping or day trading. A-Book execution provides real market execution without conflicts of interest, which is generally preferred. However, for most prop firm traders, execution quality and reliability matter more than the specific model. Focus on prop firms with good reputations and reliable payouts. See our guide to prop firms for more information.