In the fast-paced world of online trading, many traders assume that all trade execution is instant — a belief often fuelled by broker marketing and platform interfaces. But is that actually true? In reality, the speed and method of execution can vary greatly depending on the broker, platform, market conditions, and type of order. This article explores why not all execution is instant and what traders need to know to avoid costly misconceptions.

What is trade execution?

Trade execution is the process of completing a buy or sell order in the market. It involves routing the order through a broker to a liquidity provider, exchange, or internal dealing desk. Execution can be handled in different ways depending on the broker’s model, including:

• Market execution: Order is filled at the best available price, not necessarily the price you clicked.
• Instant execution: Broker attempts to fill at the exact price requested, or issues a requote.
• Pending orders: Placed to trigger at a future price and executed when market conditions allow.

Understanding the type of execution your broker offers is critical to interpreting slippage, requotes, and delays.

Why execution is not always instant

1. Market volatility:
During high-impact news events, prices can move rapidly in milliseconds. Even with modern technology, execution may be delayed or subject to slippage as brokers scramble to fill orders at the next available price.

2. Liquidity availability:
If the market lacks liquidity at your desired price, the broker has to wait until a matching counterparty becomes available. This can introduce slight delays, especially in exotic pairs or off-peak hours.

3. Order size and depth:
Large trade sizes may not be filled at a single price level. The broker may need to split the order into chunks across the order book, taking more time to execute fully.

4. Broker infrastructure:
Some brokers operate with slower internal systems or route orders through multiple layers of approval or internal risk checks. This is more common with market maker models that use a dealing desk.

5. Type of broker:
Execution speed also depends on whether your broker uses:

• ECN/STP/DMA models: Orders go directly to the market with minimal delay, but not guaranteed to be “instant” in milliseconds.
• Dealing desk models: Orders may be reviewed manually or delayed slightly, especially if it benefits the broker.

When execution feels instant — and when it doesn’t

Most retail platforms like MetaTrader 4 or cTrader give the appearance of instant execution. But this is often an interface effect — the order appears on your screen immediately, while behind the scenes it may still be processing.

Even with top-tier brokers, execution times typically range from 50 milliseconds to 500 milliseconds depending on conditions. While this is fast, it is not truly instant in a literal sense — and delays can stretch further during market stress.

Execution may feel slower when:

• Trading during low liquidity times (e.g., late Friday or early Monday)
• Using mobile apps with slower internet connections
• Submitting complex orders like trailing stops or multiple TP/SL levels

How to improve execution speed

1. Use a fast broker:
Choose brokers with direct market access and low internal latency. Look for brokers with co-located servers near major liquidity hubs like London or New York.

2. Deploy a VPS:
A virtual private server close to your broker’s servers can significantly reduce execution delay, especially for algorithmic traders.

3. Stick to liquid instruments:
Major pairs like EUR/USD, GBP/USD, or USD/JPY usually offer the fastest execution due to high liquidity.

4. Monitor execution reports:
Analyse your trade logs for execution time and slippage to determine whether your broker is meeting expected standards.

5. Avoid peak volatility unless intentional:
If your strategy doesn’t depend on trading high-impact events, avoid them. Execution delays and slippage are most severe during these periods.

Conclusion

The belief that all execution is instant is a myth. While execution speeds have improved dramatically with technology and ECN access, delays still exist due to volatility, liquidity gaps, and infrastructure limitations. Traders should understand the nuances of how execution works and optimise their setup and broker choice accordingly. Instant execution may be the goal, but in real-world markets, it’s not guaranteed.

If you want to sharpen your skills and understand how to improve execution efficiency, join our Trading Courses at Traders MBA and gain the professional insight needed to optimise every trade.