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What execution speed actually means
Execution speed is the time between submitting a market order and receiving fill confirmation from your broker. It's measured in milliseconds. Most traders focus on spreads — but execution speed has just as large an impact on real trading cost.
Here's why it matters: during a fast-moving market (an NFP release, a central bank announcement, a geopolitical shock), prices move in milliseconds. If your broker takes 300ms to fill your order instead of 50ms, the fill price may be significantly worse than the price you saw when you clicked. That difference is called slippage.
Key terms: Execution speed — time from order to fill (ms). Slippage — difference between quoted price and fill price. Fill rate — percentage of orders filled at the requested price or better. Market execution — fills at the best available price (slippage possible). Instant execution — broker may requote; no slippage guarantee.
For most retail traders holding positions for hours or days, execution speed matters less than for scalpers and day traders. But understanding it still tells you something important about your broker's infrastructure and transparency.
Where to find official execution data (RTS 27/28)
Under MiFID II, every broker regulated by a EU/EEA authority — CySEC (Cyprus), FCA (UK), BaFin (Germany), AMF (France) — must publish two annual reports:
- RTS 27 (Best Execution Report): Published by execution venues. Covers average execution speed, fill rates, and the percentage of orders where clients received prices better or worse than quoted. Updated annually for the previous year.
- RTS 28 (Top 5 Execution Venues): Published by the broker. Identifies the top 5 venues used for executing client orders in each asset class. Includes a statement on execution quality.
To find these: go to the broker's website → Legal / Regulatory Documents section. Search for "RTS 27", "RTS 28", or "best execution". Most brokers publish them as PDFs. If a broker you're considering doesn't publish these reports, that is a red flag.
What to look for in RTS 27: Average execution speed (lower = better). Fill rate at or better than quoted (higher = better). Positive slippage % vs negative slippage % — a quality broker will show roughly equal positive and negative slippage, not consistently negative.
7-step methodology to test any broker
Published data tells you what a broker claims. Testing tells you what actually happens. Use this methodology before depositing significant capital.
1
Read the RTS 27 report
Find the broker's most recent RTS 27 report. Note average execution speed (ms), fill rate at quoted price or better, and positive vs negative slippage ratio. Use these as your benchmarks for the tests below.
2
Open a demo account
Sign up for the free demo account. Use the same trading platform (MT4, MT5, or proprietary) you'll use with a live account. Do not make any judgements until you've run at least 20 orders.
3
Run 20 market orders and log results
Place 20 market orders on EUR/USD (the most liquid pair) at different times over 3–5 days. For each: note the price shown, the fill price, and the time between click and confirmation. A simple spreadsheet works perfectly.
4
Test during a news event
Place 5 orders during a high-impact event (NFP, ECB rate decision, CPI release — all on forexfactory.com calendar). Slippage widens during news — this is normal. What you're measuring is how much worse it gets for this particular broker.
5
Calculate average slippage
Sum the difference between quoted price and fill price across all trades. Divide by number of trades. Under 0.5 pips average on EUR/USD is a reasonable benchmark for a quality broker. Above 1.5 pips is poor.
6
Open a micro live account and repeat
Deposit €50–€100. Repeat the same 20-order test on the live account. If live fills are materially worse (0.5+ pips consistently) than demo fills, the broker is likely operating a different execution environment for demo vs live — a common practice to inflate demo performance.
7
Calculate total execution cost per trade
True cost = spread + commission + average slippage. For EUR/USD: if spread is 0.8 pips, commission is 0.3 pips, and average slippage is 0.4 pips, your true per-trade cost is 1.5 pips — not the 0.8 pips advertised. Compare this figure across brokers, not just the advertised spread.
EU broker execution comparison
The table below shows published execution data for major EU-regulated brokers based on their most recent RTS 27/28 reports and independent testing on EUR/USD. All brokers are CySEC or FCA regulated.
| Broker |
Regulator |
Avg execution speed |
Fill rate (quoted or better) |
RTS 27 published |
Min. deposit |
| Exness |
CySEC |
~50ms |
High — see report |
Yes |
$10 |
| AvaTrade |
CySEC / ASIC |
~80ms |
Good — see report |
Yes |
$100 |
| Pepperstone |
FCA / CySEC |
~30ms |
Very high — see report |
Yes |
No minimum |
| IC Markets |
CySEC / ASIC |
~40ms |
High — see report |
Yes |
$200 |
| XM |
CySEC |
~100ms |
Moderate — see report |
Yes |
$5 |
Note: Execution speeds shown are indicative based on published data and may vary by market conditions, platform, server location, and connection speed. Always test independently using the methodology above before depositing significant capital. Past execution performance does not guarantee future performance.
Calculating true execution cost
Most traders compare brokers on spread alone. This misses two critical cost components: commission and slippage. The table below shows how true per-trade cost differs from advertised spread for a standard EUR/USD market order.
| Cost component |
ECN/STP broker (typical) |
Market-maker broker (typical) |
| Spread |
0.1–0.3 pips |
0.8–1.5 pips |
| Commission |
$3.50 per lot (≈ 0.35 pips) |
$0 (built into spread) |
| Avg slippage (non-news) |
0.1–0.3 pips |
0.3–0.8 pips |
| True cost per trade |
≈ 0.6–1.0 pips |
≈ 1.1–2.3 pips |
For active traders placing 10–20 trades per week, the difference between a 0.8 pip and 1.8 pip true cost compounds significantly over months. Use the 7-step methodology above to calculate the true cost for any broker you're considering.
Red flags to watch for
- No RTS 27/28 reports published: Required by MiFID II for all EU-regulated brokers. Absence suggests either poor compliance or an unregulated broker.
- Demo fills consistently better than live fills by more than 0.3 pips: Indicates two-tier execution — better conditions shown during the sales process.
- All slippage is negative: In a legitimate market, slippage should occur roughly equally in both directions. Consistently negative slippage indicates the broker may be routing orders to benefit itself.
- Execution stats not mentioned on the website: Quality brokers advertise execution speed because it's a competitive advantage. Brokers that hide it often have something to hide.
- Requotes on market execution accounts: A broker advertising market execution should not regularly requote. Frequent requotes on a market execution account is a significant red flag.
Brokers worth testing first
Both brokers below are CySEC-regulated, publish RTS 27/28 reports, and allow demo account testing before you deposit.
Exness
CySEC regulated · CY 178/12
- ~50ms avg execution speed
- Market & instant execution accounts
- Spreads from 0.0 pips (Pro)
- Min. deposit: $10
- EU negative balance protection
Open demo account →
Affiliate link. We may earn a commission. CFDs carry risk.
AvaTrade
CySEC regulated · CY 347/17
- ~80ms avg execution speed
- Fixed & floating spreads available
- MT4, MT5, AvaTradeGo app
- Min. deposit: $100
- EU negative balance protection
Open demo account →
Affiliate link. We may earn a commission. CFDs carry risk.
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Frequently asked questions
What is execution speed in forex trading?
Execution speed is the time between submitting a market order and receiving fill confirmation from your broker. Measured in milliseconds. A faster fill means the price you receive is closer to what you saw when you clicked. Slow execution causes slippage — you get a worse fill, especially during fast markets or news events.
What is a good execution speed for a forex broker?
Under 100 milliseconds is competitive. Many ECN/STP brokers achieve sub-50ms. Consistency matters more than the headline figure — a broker with a consistent 90ms average beats one that claims 30ms but spikes to 2 seconds during news events.
Where can I find a broker's official execution statistics?
EU-regulated brokers must publish RTS 27 and RTS 28 reports under MiFID II. Find them in the broker's Legal or Regulatory Documents section — usually PDFs. If a broker doesn't publish them, check their regulatory status — it may not be EU-regulated.
Is demo execution the same as live execution?
Not always. Some brokers offer better fills on demo to attract deposits. Always test with a micro live account (€50–€100) before scaling. If live fills are consistently 0.5+ pips worse than demo, factor that into your total trading cost.
What is slippage and how do I calculate it?
Slippage is the difference between the price you saw when you clicked and the price you received. Calculate it per trade (fill price minus quoted price), sum across 20–30 trades, then divide by number of trades for your average. Under 0.5 pips on EUR/USD is a reasonable benchmark.
Which EU brokers have the best execution speed?
Pepperstone, Exness, and IC Markets consistently publish strong execution data and are regulated by FCA or CySEC. Always test independently using a demo account — execution quality varies by market conditions, server location, and connection speed.
This article is for educational purposes only and does not constitute financial advice. Forex trading involves significant risk of loss. Past performance is not indicative of future results. Always verify broker regulatory status before depositing. © 2026 CompareFX / Michalvi Empire LTD.