HomeArticlesMT4 Brokers – Instant Execution Vs Market Execution


MT4 Brokers – Instant Execution Vs Market Execution — 6 Comments

  1. Thanks. I was disappointed to read this from ibfx since I was planning to go live with megadroid on ibfx in the next month or so. I have a suspicion that the EA will no longer work as well now. FXDD is my second choice since I don’t have the funds to commit to Alpari UK.

    • Hi Dr Zeus. I really hope the good performance continues at InterbankFx after their change to “Market Execution”, but I’m a little concerned it won’t. After 1-2 months of results we’ll have a good idea of the impact of these changes. Before this announcement I was actually considering adding more money to my InterbankFx trading account, and trade larger lots wthere. But now I’ve put those plans on hold.

  2. just a point, my fxpro is a instant execution broker but the box on slippage is not ticked, do we need as your example have the box ticked ?
    thanks !

  3. Hi albatore ,

    No, you don’t need to.

    All MT4 EA’s submit orders by calling the OrderSend function. One of the parameters that gets sent is the slippage (or maximum deviation). This happens regardless of the slippage setting on the order window. However only “Instant Execution” brokers will use this slippage setting. It’ll be ignored by STP brokers.

  4. Market Execution is used by those brokers to manage there risk, basically you put on order on and a hedge order is created with what ever bank offered them the price (hence STP). You get a true market rate.

    Instant execution is for market makers or brokers that do not automatically cover there exposure. It will get harder and harder to find instant execution brokers as there are more and more EA’s out there that take adavantage of this causing the brokers to loss money, That and its more risky for the broker to operate this way.

    If your broker losses money / doesn’t cover there risk appropriately then your cash could be a risk. Anyone who traded with Sonray will tell you all about it >..<

  5. Hi Ben,

    All MT4 brokers are market makers actually. The market maker functions are either done in-house or outsourced to a 3rd party Market Maker or “bank” as they like to call them.

    The so-called “STP”: model is becoming very popular amongst the brokers because they have essentially removed any form of slippage control which works against traders.

    In addition the “low spreads” are marketed heavily, but the reality is that the orders are often slipped on entry/exit a few pips so that the displayed spread on the MT4 terminal is actually misleading. For example, you might see a 1.8 pip EUR/USD spread on the MT4 terminal, but if your order is slipped 1.5 pips or so on entry and exit, the real spread is closer to 4 pips or more. I’ve seen this happen on my GO Markets account quite often.

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