Execution Speed
Trading MechanicsThe time between submitting an order and receiving a fill confirmation. Measured in milliseconds. Faster execution reduces slippage and requotes.
What Is Execution Speed?
Execution speed is the time it takes for your order to be received, processed, and filled by your broker or their liquidity provider. It is measured in milliseconds (ms). Average execution speed for retail forex brokers ranges from 20ms to 500ms. Under 100ms is considered fast. Over 500ms is slow and increases the risk of Slippage and Requotes.
Factors Affecting Execution Speed
Several factors influence execution speed. Your internet connection and physical distance from the broker's servers matter (which is why some traders use VPS hosting near their broker's data center). The broker's technology stack and server capacity affect processing time. The execution model also matters: STP/ECN brokers may route orders to external liquidity providers, adding latency, while market makers fill internally (potentially faster but with different conflict-of-interest considerations).
Why Execution Speed Matters
For scalpers and high-frequency strategies, every millisecond counts because prices can change during the execution window. For swing traders holding positions for days, execution speed is less critical. Most regulated brokers publish their average execution speed statistics. When comparing brokers, look for consistent sub-200ms execution with low rejection and requote rates alongside competitive Spreads.
Related Terms
Slippage
The difference between the expected fill price and the actual fill price of an order. Slippage occurs when market conditions change during order execution.
Requote
When a broker rejects your order at the requested price and offers a new price instead. Requotes happen when the price moves during order processing.