PepperstoneVisit Pepperstone74-89% of retail investor accounts lose money when trading CFDs
FP MarketsVisit FP Markets74-89% of retail CFD accounts lose money
Forex.comVisit Forex.com73% of retail investor accounts lose money
IC MarketsVisit IC Markets74-89% of retail CFD accounts lose money
OctaFXVisit OctaFX74-89% of retail CFD accounts lose money
RoboforexVisit Roboforex61.41% of retail CFD accounts lose money
VantageVisit Vantage74-89% of retail CFD accounts lose money
AdmiralsVisit Admirals76% of retail investor accounts lose money
AvaTradeVisit AvaTrade79% of retail investor accounts lose money
HFMVisit HFM70.51% of retail investor accounts lose money
Fast execution forex brokers refer to forex (foreign exchange) brokerage firms that offer trading accounts with quick order execution for their clients.
When a trader places a trade order, the speed at which this order is executed is referred to as the order execution time. This is crucial for ensuring that traders obtain a price that’s as close as possible to what they initially see when making the decision to buy or sell. Particularly in fast-moving markets like forex, a mere few seconds of delay might significantly impact the price of a finalized trade.
One issue traders often encounter is slippage, where there’s a disparity between the requested and the executed price. However, with fast execution, the chances of experiencing such slippage can be considerably reduced, especially in fluctuating markets.
The backbone of such swift execution is typically a combination of cutting-edge technology and infrastructure. This encompasses advanced trading platforms, connections straight to liquidity providers, and powerfully built servers that are strategically positioned near primary financial centers.
Moreover, the efficiency of execution is often bolstered by brokerages that maintain ties with several liquidity providers. These brokerages are in a prime position to fetch optimal rates for their clientele since they can promptly direct trade orders to whichever provider is offering the most competitive rate at any given time.
In this article we have grouped the best brokers with fast order execution.
To compile this ranking, we considered the following factors:
- The average execution speed of orders
- The commissions charged by the broker
- The amount of tradable forex pairs
|Broker||Avg execution time|
|FP Markets||30 ms|
|IC Markets||66 ms|
|HF Markets||600 ms|
What are the best fast execution forex brokers?
Below our curated list of the best fast execution forex brokers, with details of speed of execution, features and characteristics.
What is order execution speed in forex trading?
Order execution speed in forex trading refers to the time it takes for a trade to be completed after a trader has issued a trading order.
It measures the duration from the moment you click “buy” or “sell” until the moment your order is filled by your broker. This process involves several stages, such as order routing, order matching, and trade confirmation.
Why is it important to have a fast order execution?
Fast order execution is essential in forex trading as it increases the likelihood of your order being filled at your desired price.
The forex market is highly volatile, with prices changing within fractions of a second. Therefore, if your broker’s execution speed is slow, you might get a worse price than you expected, negatively impacting your potential profits.
By choosing the best forex brokers you can ensure a higher order execution.
Why is fast order execution important in scalping forex?
Since scalping is all about opening and closing orders within small periods of time, precision is everything: small price variations can change the result significantly; orders must be executed instantly.
The profit margins on each trade are typically very small in scalping. Therefore the liquidity of the market is crucial. The more liquid a market is, the more precisely orders get executed by scalping brokers, and the higher the potential profit.
What is the fastest forex execution method?
The fastest forex execution method is the one executed by market makers, followed by ECN brokers, and then by STP brokers.
In the case of market makers, the order is essentially instant because the broker acts as a direct counterpart of the client’s trade
ECN brokers and STP brokers have access to liquidity via tier-1 liquidity providers, linking top banks and financial institutions. Execution speed can be influenced by the quantity and quality of liquidity providers, hence slippage and requote could happen.
STP brokers have a connection with tier-2 liquidity providers (Prime of prime brokers or liquidity aggregators) which pass over the orders to the tier-1, making it slightly slower than ECN.
What can influence order execution speed?
Several factors can influence order execution speed, including the broker’s technology, server location, internet speed, and market volatility. To ensure faster execution speeds, consider these factors:
– Position volume: If there is low liquidity and the order volume is high, you may struggle to find a counterparty.
– Volatility: During high market volatility, the broker may struggle to match orders, causing delays.
– Lack of infrastructure: If the broker has few liquidity providers and little internal liquidity to act as a market maker, it may have trouble executing orders promptly.
– Type of execution: Some types of orders are executed faster than others. For instance, market orders are typically faster than limit orders.
– Latency: The time it takes for an order to reach the broker’s server starting from the trader’s server also impacts execution speed.
What are the differences between market orders and limit orders?
Market orders and limit orders differ in terms of their execution speed and price certainty.
- Market orders are typically executed faster than limit orders. With a market order, you’re telling the broker to execute the order at the price closest to the current market price.
- With a limit order, you’re asking the broker to open a position at a specific price or better. However, limit orders are not guaranteed to execute. Therefore, brokers aim to comply with limit orders as much as possible, which can sometimes lead to slight delays relative to market orders.
What is latency?
In online trading, latency refers to the delay in time it takes for an order to travel from the trader to the broker’s server for execution. High latency can cause slippage (when the executed price is different from the expected price) due to market volatility.
Does a VPS benefit your forex execution?
Using a Virtual Private Server (VPS) can help mitigate some of the problems that cause latency and lead to slower order execution. A VPS is a dedicated server that you can use to run your trading platform. Having the VPS near a major financial center is beneficial as it reduces the travel time for your orders, thereby improving execution speed. Many forex brokers can provide you with a VPS for free by fulfilling certain trading conditions.
What is the forex trading execution in demo accounts?
Demo accounts simulate real trading environments but use virtual money. The order execution in a demo account can sometimes be faster and less prone to slippage because the trades are not being sent to the real market. Therefore, the trading conditions in a demo account may not perfectly reflect those in a live trading environment. It’s essential to understand this difference when using a demo account to practice or test trading strategies.
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