Do you know what Market Execution is at forex brokers? This aspect is usually only noted after you explore other specifications of a broker. Even though the information is rarely displayed, Market Execution is no less important than spread, leverage, or minimum deposit. Therefore, this article will take a deeper look at trading execution and why Market Execution could be a better choice.

Getting to Know Market Execution in the Forex Market

From a trader's point of view, placing a buy or sell order is an activity called trading execution. However, in a broader sense, forex market execution also involves processing traders' orders on the market. Of course, those who can help "deliver" orders to the market are brokers, because in reality, brokers act as intermediaries between traders and liquidity providers in the market.

Well, Market Execution is a type of order execution where the process is carried out at the available market price. If there is a mismatch between the market price and the price you ordered, the order can automatically be executed at the market price closest to your request. That is why, in Market Execution, there may be slippages where the price executed does not match the order; it can be higher or lower than it should be.

Compared to the other type, Instant Execution, Market Execution is certainly more reliable. Instant Execution is not carried out according to market prices, but rather based on the traders' requested price. If the price is not available on the market, the order will beed or requoted. Apart from that, Instant Execution is more prone to manipulation from the broker.

To make it easier to understand Market Execution, here are the pros and cons to consider.

Advantages of Market Execution:

1. More transparent because it matches market prices.
2. Execution can be faster because there are nos or requotes; Orders whose prices are not available on the market will be executed automatically at the closest price.
3. Allows positive slippages which can provide more profits.
4. Orders will always be executed.
5. Used by NDD brokers, in which Market Execution has become the standard of a credible broker.
6. Very low spread. In some cases, Market Execution brokers even offer zero spreads.

Disadvantages of Market Execution:

1. Usually apply a trading commission.
2. No control over positive and negative slippage.
3. No fixed spread
4. In some brokers, Stop Loss and Take Profit cannot be placed before the order is executed.

Which Brokers Establish Market Execution?

If you want to trade on market prices, low spreads, and fast execution, then look no further than the following brokers.

Exness

Exness has 5 types of accounts of which 4 rely on Market Execution. Interestingly, there is 1 account that offers Instant Execution and Market Execution options at the same time, namely the Pro account for professional traders.

For traders who only want Market Execution, they can choose from Standard, Standard Cent, Zero, or Raw Spread. The minimum deposit on Standard accounts is around $10, while Zero and Raw Spread accounts can be opened with deposits of $200. Spreads on Standard accounts are available from 0.2 pips, while the other two accounts offer 0 pip spread.

IC Markets

As an ASIC-regulated ECN broker, IC Markets is known to have reliable credibility. This is further supported by their Market Execution on all account types. Execution details are not explained on the broker's website but can be seen directly on the trading platform.

Apart from that, IC Markets emphasizes that the order execution utilizes enterprise-grade tools on their trade servers in the NY4 & LD5 data centers, both of which are the leading server choices in the world of forex trading. If you are interested in registering with IC Markets, you can choose between the Standard, Raw Spread, or cTrader account types. The Standard account charges spread starting from 0.8 pips, while Raw Spreads charges a spread of 0.0 pips with a commission of $3.5 per lot. For cTrader, a spread of 0.0 pips is applied with a commission of $3 per $100,000 volume.

Octa

According to information on Octa's official website, all account types have Market Execution with a processing speed of under 1 second. Just like IC Markets, Octa has 3 trading account options. Each of them is OctaTrader, MetaTrader 5, and MetaTrader 4. The minimum deposit for these three accounts is only $25.

In addition, Octa broker charges relatively minimal trading fees. This broker does not apply commissions or any markups as they only charge spreads in the range of 0.6 pips. If you are interested in registering at OctaFX, follow the instructions in the Octa registration guide.

XM

XM Broker is quite committed in presenting their order execution details. It's all revealed on a special page that generally explains how XM uses real-time Market Execution with the advantage of No Requote, 99.35% success for execution under 1 second, as well non-stop order processing even during weekends and holidays.

There is no classification of accounts according to execution, so it can be concluded that the XM applies Market Execution in all types of accounts. This can give you more options in choosing the ideal account type. Currently, XM has 4 account choices namely Micro, Standard, Ultra Low, and Shares. You can trade Cent lot size equivalents on the Micro account, or get low spreads from 0.6 pips on the Ultra Low account.

Admirals

Just like the previous brokers, Admirals can be regarded as a Market Execution broker because they apply the feature on all the account types it offers. This broker has 3 types of MT5 accounts and 2 MT4 accounts. All account types available at Admirals Global can be opened with a $25 deposit except the Invest.MT5 account. Meanwhile, the minimum spread is offered in the range of 0-0.6 pips.

This FCA and ASIC-regulated broker also offers several exclusive features such as the MetaTrader Supreme Edition, One Click Trading, Volatility Protection, Admirals Wallet, StereoTrader, and Market Depth with Level II Pricing.

FXTM

FXTM only has 2 types of trading accounts, all of which implement Market Execution. On the Advantage account, FXTM traders can enjoy spreads of 0.0 pips with trading commissions between $0.4 to $2 per position. Meanwhile, the Advantage Plus account provides a minimum spread of 1.5 pips without any commission. Both can be opened with a deposit starting at $500.

What's interesting about FXTM is the floating leverage. Traders can get leverage of up to 1:2000 at this broker, but there is a floating policy that will adjust the leverage to the state of account equity. That way, trading risks will always be managed based on the market conditions.

FXOpen

This pioneering broker in the field of Bitcoin trading offers the advantages of Market Executions in all account types except Micro. Thus, you can get immediate execution at market prices in ECN, Crypto, and STP accounts. Spreads only apply on Crypto and STP accounts, while commissions are charged on ECN ($15 per Standard lot) and Crypto (0.5% per round-turn) accounts.

If you want to register in an account with the lowest minimum deposit, you can choose between Crypto or STP ($10), because the ECN at FXOpen has a minimum deposit of $100. What you need to pay attention to is that there is a maintenance fee for inactive accounts of $10-$100 per month in this broker. If you wish to reactivate your account, there will be another $50 fee.

Alpari

Alpari provides a wide selection of accounts to accommodate the needs of various traders. Market Execution advantages are available on ECN account types, namely ecn.mt4, pro.ecn.mt4, and ecn.mt5. Of the three, only the ecn.mt4 account has a minimum deposit rule of $300 and does not charge trading commissions.

Meanwhile, pro.ecn.mt4 and ecn.mt5 accounts can be opened with a minimum deposit of $500. Both also charge a commission of $16 per round-turn for every $1 million in trading volume.

FxPro

Another example of a UK FCA-regulated Market Execution broker is FxPro. This broker classifies its accounts into 4 types, namely Standard, Raw+, Pro, and Elite. All orders can be processed with Market Execution as long as traders use the MetaTrader 5 platform. Meanwhile, traders using the MetaTrader 4 platform will get Instant Execution regardless of their account type.

FxPro provides trading options in MetaTrader 4 and MetaTrader 5 on all accounts except Pro. Thus, if you want to trade with Market Execution on FxPro, you should avoid the Pro account and choose the MetaTrader 5 platform.

How to Check a Broker's Execution Type?

There are 2 ways to find out the type of execution applied by your broker. First, look for information on the broker's official website. Such a detail is not always clearly presented, but you can dig up this information as the initial step in choosing a broker. Forex brokers, which are usually transparent and very detailed in informing their services, usually provide execution information on the Trading Account page.

The second way, look at the MetaTrader order window. This method is certainly more complicated as you have to register an account and download the trading platform first. Nevertheless, the order execution information will usually appear here.

It is important to note that the two methods above only scratch the surface. Whether a broker uses Market Execution or Instant Execution, there can;t be a 100% certainty because such things are only known by the brokers themselves.

So, what to do?

Most traders will usually conclude from their experience to confirm whether the broker really serves Market Execution or not. Something like this can be detected through the spread, frequency of requotes or slippage, average execution speed, etc. To anticipate any frauds, you can explore other traders' reviews about the broker and trade with small funds first.