"The trade didn't go through, and I missed a great trading opportunity."
"Due to slippage, the execution rate was 5 pips higher than the order rate."
Do you have any of these concerns?
In conclusion, it's best to choose one with a high execution rate
This is because a high execution rate reduces the chances of missing trading opportunities and minimizes slippage
This article compares overseas forex brokers with high execution speeds and introduces brokers that are less prone to slippage .
We will also provide a detailed explanation of the evaluation points for execution speed, so please refer to it
Contents
- 1 What is execution power?
- 2 Comparing the differences in execution capabilities between overseas and domestic forex brokers
- 3 Advantages of overseas forex brokers with high execution speed
- 4 Disadvantages of overseas forex brokers with low execution speed
- 5 7 Key Points for Evaluating the Execution Capabilities of Overseas Forex Brokers
- 6 [Comparison] Top 5 Overseas Forex Brokers with High Execution Speed
- 7 Tips for improving the execution speed of overseas forex brokers
- 8 Frequently Asked Questions about the Execution Capabilities of Overseas Forex Brokers
- 9 Summary of execution capabilities of overseas forex brokers
What is execution power?
Execution power the ability to execute trades at the price you intended .
If the execution rate is low, there is a higher chance that you will not be able to execute trades as intended
Here, we will explain the following points in detail regarding execution power
- Is execution speed important in overseas forex trading?
- What is the execution rate?
- What is slippage?
If you want to know how execution speed affects trading, please refer to this information
Is execution speed important in overseas forex trading?
Execution speed is a very important factor in overseas forex trading
This is because in FX trading, there is a risk that you may not be able to execute a trade at the price you ordered, which can lead to unexpected losses .
Furthermore, overseas forex trading often involves high leverage, meaning that even a small movement in pips can result in a large price fluctuation
Therefore, even a few pips off from the target price can lead to significant risk
Therefore, execution speed is extremely important in order to trade at the target price
What is the execution rate?
The execution rate is the degree to which your orders are being executed at the price you requested .
On the other hand, execution power refers to the ability to execute trades accurately, so please note that the meaning is different
The execution rate can be calculated using the following formula:
Execution rate = "Number of trades executed at the price you ordered" ÷ "Number of trades you placed (market orders)"
The execution rate increases as the specifications of the FX broker's servers and the processing power of their systems improve
What is slippage?
Slippage is the difference between the price at which you placed an order and the price at which the order was actually executed .
Slippage is more likely to occur in volatile markets or with streaming orders where the time between placing an order and its execution is short
Furthermore, low execution power makes slippage more likely
Therefore, to prevent slippage, we recommend trading with a broker that has high execution capabilities
Comparing the differences in execution capabilities between overseas and domestic forex brokers
There are differences in execution capabilities between overseas and domestic forex brokers
Generally speaking, overseas forex brokers tend to have better execution capabilities
Here, we will compare the differences between overseas and domestic forex brokers, focusing on the following points
- Comparing the differences in trading methods
- Comparing differences in execution rates
- Comparing the differences in ease of large-volume transactions
This article explains why overseas forex brokers generally have superior execution capabilities, so please use it as a reference
Comparing the differences in trading methods
Overseas forex brokers and domestic forex brokers have different trading methods
The differences in trading methods are summarized in the table below
| Overseas Forex Brokers | Domestic FX brokers | |
|---|---|---|
| Mainstream trading methods | NDD method | DD method |
| execution speed | fast | slow |
| Intervention by FX brokers in trading | none | can be |
| Transparency of transactions | expensive | low |
| spread | wide | narrow |
| FX company's revenue sources | Spread, trading fees | Customer losses |
Overseas forex brokers primarily use the NDD (No Dealing Desk) system, while domestic forex brokers mainly use the DD (Dealing Desk) system
The NDD (No Dealing Desk) method offers high transparency in trading and fast execution speeds because the FX broker does not intervene in the transactions, making order rejections and slippage less likely .
In the DD (Dealing Desk) system, the FX broker intervenes in the trading process, resulting in low transparency and a higher likelihood of order rejection and slippage .
Comparing differences in execution rates
There is a difference in execution rates between overseas and domestic forex brokers, with overseas brokers generally having higher execution rates
Overseas forex brokers use the NDD (No Dealing Desk) method, while domestic forex brokers use the DD (Dealing Desk) method. This difference in trading methods results in differences in execution rates.
Because the DD (Dealing Desk) system involves an FX broker during the transaction, there is a possibility that the FX broker may refuse to execute trades that would be disadvantageous to them
Since order rejections inevitably lower the execution rate, the DD (Dealing Desk) system, where order rejections are possible, has a lower execution rate than the NDD (Non-Dealing Desk) system
Comparing the differences in ease of large-volume transactions
There is a difference in the ease of large-volume trading between overseas and domestic forex brokers
Generally, domestic FX trading uses a "1 lot = 10,000 currency units" model , overseas FX trading uses a "1 lot = 100,000 currency units" model , meaning that overseas FX allows for larger order sizes to be placed at once.
In large-scale trades involving many lots at once, even a few pips of error can cause significant fluctuations in the price
Therefore, for large-volume trades, overseas forex brokers with strong execution capabilities are generally easier to use.
Advantages of overseas forex brokers with high execution speed
From here, I will introduce the advantages of trading with overseas forex brokers that have high execution capabilities
The benefits are as follows:
- Large-scale transactions are easy to conduct
- I can make trades according to plan
- Easy-to-use scalping techniques
We will explain each of these in detail, so please refer to this information
Large-scale transactions are easy to conduct
One advantage of trading with an overseas forex broker that has high execution capabilities makes large-volume trades easier .
Large-volume trades involve trading many lots at once, so if order rejections or slippage occur, there is a risk of incurring significant losses
If you use an overseas forex broker, you can avoid the above risks because they employ the NDD (No Dealing Desk) system, allowing you to trade with peace of mind
I can make trades according to plan
The advantage of trading with an overseas forex broker that has high execution capabilities you can trade according to your plan .
If you use an overseas forex broker that employs the NDD (No Dealing Desk) system, there will be no order rejections, so your trades will be executed as planned
Furthermore, slippage is less likely to occur, which helps avoid unexpected losses
Therefore, it is very suitable for traders to trade in a planned manner
Easy-to-use scalping techniques
One advantage of trading with overseas forex brokers that have high execution speeds makes scalping strategies easier to use .
Scalping, a short-term trading method, involves making multiple trades within a few hours, so if the execution speed is low, it may not be possible to trade in a short period of time
Therefore, using a broker with high execution capabilities makes it possible to execute trades exactly as intended.
In short-term trading, even a difference of a few pips can have a significant impact, so high execution speed is extremely important
Therefore, a high execution rate makes it easier to use scalping strategies
Disadvantages of overseas forex brokers with low execution speed
From here, we will introduce the disadvantages of trading with overseas forex brokers that have low execution capabilities
The disadvantages are as follows:
- There is a possibility that you will not be able to trade due to order rejection
- Slippage can easily increase losses
- It's difficult to trade according to plan
We will explain each of these in detail, so please refer to this information
There is a possibility that you will not be able to trade due to order rejection
The disadvantage of trading with overseas forex brokers that have low execution capabilities the possibility that trades may be rejected and you may not be able to execute them .
With overseas forex brokers that employ the NDD (No Dealing Desk) system, there is no possibility of order rejection by the forex broker
However, if the slippage exceeds the allowable limit for MT4/MT5, the order will be rejected
It's important to know that even with overseas forex trading, a low execution rate can lead to order rejection
Slippage can easily increase losses
One disadvantage of trading with overseas forex brokers with low execution speed losses are more likely to increase due to slippage .
Low execution speed makes slippage more likely, making it difficult to trade at your desired price
Therefore, if the executed price deviates from the actual price, the profit may decrease or the loss may increase by the amount of the discrepancy
In particular, with overseas forex trading, high leverage is common, and even a difference of a few pips can result in significant losses, so caution is necessary
It's difficult to trade according to plan
One disadvantage of trading with overseas forex brokers that have low execution speeds is difficult to trade according to your plan .
Low execution power increases the likelihood of order rejection and slippage
Therefore, even if you want to trade at your desired price, you may not be able to.
If you can't execute a trade at your target price, your post-execution plan will change, making it highly likely that your plan will not succeed
To ensure your trades go according to plan, we recommend choosing an overseas forex broker with a high execution rate
7 Key Points for Evaluating the Execution Capabilities of Overseas Forex Brokers
From here, we will introduce seven points to evaluate the execution capabilities of overseas forex brokers
The evaluation points are as follows:
If you want to use a broker with high execution capabilities but don't know where to look, please use this as a reference
Contract rate
The key factor in evaluating the execution capabilities of overseas forex brokers is the execution rate
A higher execution rate means your trades are more likely to be executed, so choose a broker with a high execution rate.
However, please note that the execution rate represents the probability of execution, and does not guarantee that the order will be executed exactly as planned
Since a higher probability of execution is always desirable, it's necessary to check the execution rate
Execution speed
The key factor in evaluating the execution capabilities of overseas forex brokers is execution speed
A faster execution speed increases the probability of executing a trade at the offered price , making it easier to execute trades as intended.
Even if the execution rate is high, if the execution speed is slow, slippage may occur, so be sure to check the execution speed as well
Slippage
The key point to consider when evaluating the execution capabilities of overseas forex brokers is slippage
Slippage is the difference between the price at which you placed your order and the price at which the order was actually executed .
When slippage occurs, the order is executed at a price different from the price at which it was placed, making it impossible to execute the trade as intended
It is important to check in advance whether or not slippage occurs with overseas forex brokers and how often it occurs
Transaction method
The key factor in evaluating the execution capabilities of overseas forex brokers is their trading method
There are two main types of trading methods: the " NDD method " and the " DD method
The characteristics of each are shown below
| NDD method | DD method | |
|---|---|---|
| Contract Rejection | none | can be |
| Transparency of transactions | expensive | low |
| Payment speed | fast | slow |
| Frequency of slippage | few | many |
Looking at the table for order rejection, settlement speed, and slippage frequency, the NDD method appears to be advantageous
Therefore, brokers that employ the NDD (No Dealing Desk) method tend to have higher execution capabilities.
currency pair
The key factor in evaluating the execution capabilities of overseas forex brokers is the currency pair
Currency pairs with high liquidity tend to have high execution speed.
In particular, major currency pairs such as USD/JPY and EUR/USD have high liquidity and strong execution capabilities
On the other hand, currency pairs with low liquidity have a small trading volume and therefore have lower execution capabilities compared to currency pairs with high liquidity
If you want to trade currency pairs with high execution speed, choose major currency pairs
Platform (MT4/MT5)
The key factor in evaluating the execution capabilities of overseas forex brokers is their platform (MT4/MT5)
In overseas forex trading, it's common to use MT4 or MT5, which offer fast and stable order execution
The features of MT4 and MT5 are summarized below for your reference
| MT4 | MT5 | |
|---|---|---|
| Number of supported overseas forex brokers | many | few |
| Hourly timeframe | 9 types | 21 types |
| Operating speed | slow | fast |
MT4 is a stable platform supported by many overseas forex brokers
On the other hand, MT5 is more feature-rich and faster than MT4, so if you want a more comfortable trading experience, we recommend choosing MT5.
server
The key factor in evaluating the execution capabilities of overseas forex brokers is their trading servers
an overseas forex broker's trading server is a major factor in the execution speed of trades.
No matter how high the execution power is, if the server is weak and goes down easily, you won't even be able to trade in the first place
You should be aware of information such as the specifications of the FX broker's servers and whether they have experienced server downtime in the past beforehand
[Comparison] Top 5 Overseas Forex Brokers with High Execution Speed
Here are five overseas forex brokers with high execution speed
Below, we will explain the characteristics of each company and the reasons why we recommend them
①AXIORY
| Contract rate | 99.99％ |
|---|---|
| Execution speed | Average 0.14~0.18 seconds |
| Slippage | Average less than 0.2 pips |
| Scalping restrictions | No restrictions |
| Maximum leverage | 1000 times |
| Transaction method | NDD method (STD/ECN) |
| platform | MT4, MT5, cTrader |
| Stop-loss | 20％ |
| Account opening bonus | none |
| Deposit Bonus | Yes (may vary depending on the campaign) |
| Transaction fees | $6 (round trip) |
| Japanese support | Yes (email, chat) |
AXIORY is an overseas forex broker that has been providing services since 2011. In addition to its execution rate and execution speed, it is said to have one of the best execution capabilities in the industry,
Furthermore, the trading servers are provided by EQUINIX, and the specifications of the trading system are more than adequate
Since the company also publishes actual data on its execution capabilities (such as execution rate, execution speed, and slippage rate) on its official website, transparency regarding execution capabilities is ensured .
Since there are no restrictions on scalping, it is recommended for traders who primarily engage in short-term trading
However, please note that if your account balance exceeds 500,000 yen, there will be a limit on the maximum leverage
With its narrow spreads and free trading fees, among other attractive features beyond just execution speed, this overseas forex broker is highly recommended
②TitanFX
| Contract rate | 99.99% or more |
|---|---|
| Execution speed | Average 0.037 seconds |
| Slippage | Average less than 0.3 pips |
| Scalping restrictions | No restrictions |
| Maximum leverage | 500 times |
| Transaction method | NDD method (STD/ECN) |
| platform | MT4, MT5 |
| Stop-loss | 20％ |
| Account opening bonus | none |
| Deposit Bonus | none |
| Transaction fees | $7 (round trip) |
| Japanese support | Yes (email, chat) |
TitanFX is an overseas forex broker established in 2014, boasting high execution speed with an average execution time of 0.037 seconds
Furthermore, like AXIORY, it uses EQUINIX's servers for trading, and the specifications of its trading system are more than adequate
Since the company also publishes actual data on its execution capabilities (such as execution rate, execution speed, and slippage rate) on its official website, transparency regarding execution capabilities is ensured .
Unlike AXIORY, meaning you can trade with maximum leverage even in large transactions
If you always want to trade with maximum leverage, we recommend trading with TitanFX
③ Three Trader
| Contract rate | No official announcement has been made |
|---|---|
| Execution speed | No official announcement has been made |
| Slippage | No official announcement has been made |
| Scalping restrictions | No restrictions |
| Maximum leverage | 1000 times |
| Transaction method | NDD method (STD/ECN) |
| platform | MT4, MT5 |
| Stop-loss | 20％ |
| Account opening bonus | can be |
| Deposit Bonus | can be |
| Transaction fees | $4 (round trip) |
| Japanese support | Yes (email, chat) |
Three Trader is an overseas forex broker that launched its services in 2021 and is popular among traders who primarily use scalping strategies due to its industry-leading narrow spreads.
While we don't have actual data on execution speed, we use EQUINIX's trading servers, so there are no issues with trading specifications
Since there are no restrictions on scalping, it is recommended for traders who primarily engage in short-term trading
However, it's important to note that there are limits on the maximum leverage depending on the currency pair
With its narrow spreads and free trading fees, this overseas forex broker is highly recommended
④ FxPro
| Contract rate | 99.98% |
|---|---|
| Execution speed | Average 0.012 seconds |
| Slippage | No official announcement has been made |
| Scalping restrictions | No restrictions |
| Maximum leverage | 1000 times |
| Transaction method | NDD method (STD/ECN) |
| platform | MT4, MT5, cTrader |
| Stop-loss | 20％ |
| Account opening bonus | none |
| Deposit Bonus | none |
| Transaction fees | none |
| Japanese support | Yes (email, chat) |
FxPro is an overseas forex broker that has been providing services since 2006 and is well-regarded for its execution capabilities and speed.
Furthermore, we use EQUINIX's trading servers, so there are no issues with trading specifications
Since they also publish actual data regarding execution capabilities (such as execution rate and execution speed) on their official website, transparency regarding execution capabilities is ensured .
However, please note that there are limitations on the maximum leverage depending on the lot size
With over 2100 tradable instruments available, FxPro is recommended for those who want to trade a wide variety of instruments
⑤ Axi
| Contract rate | 99.99% or more |
|---|---|
| Execution speed | 0.1~0.001 seconds |
| Slippage | No official announcement has been made |
| Scalping restrictions | No restrictions |
| Maximum leverage | 1000 times |
| Transaction method | NDD method (STD/ECN) |
| platform | MT4, MT5 |
| Stop-loss | 20％ |
| Account opening bonus | none |
| Deposit Bonus | none |
| Transaction fees | none |
| Japanese support | Yes (email, chat) |
Axi is an overseas forex broker that has been providing services since 2007 and is well-regarded for its execution capabilities and speed.
Furthermore, we use EQUINIX's trading servers, so there are no issues with trading specifications
Since they also publish actual data regarding execution capabilities (such as execution rate and execution speed) on their official website, transparency regarding execution capabilities is ensured .
However, it's important to note that there are limits on the maximum leverage depending on the currency pair
Because it holds multiple financial licenses, Axi is recommended for those who prioritize reliability
Tips for improving the execution speed of overseas forex brokers
Here are three tips to improve the execution speed of overseas forex brokers
- Reduce the order lot size
- Trade during times when execution power is high
- Turn off unnecessary features on the platform
Execution speed is often determined by overseas forex brokers, but it is possible for individuals to improve it to some extent.
If you are concerned about low execution speed, please refer to this information
Reduce the order lot size
One way to improve the execution speed of overseas forex brokers to reduce the order lot size .
Increasing the order lot size can affect market liquidity and potentially reduce the execution rate
Be especially careful when making large trades with currency pairs that have low liquidity
If you want to increase the order lot size, one option is to split the order into multiple lots
Trade during times when execution power is high
The key to improving the execution speed of overseas forex brokers is to trade during times when execution speed is high
Execution speed is also affected by the timing (time of day) of the trade
Orders are more likely to be executed when trading volume is high, such as when major foreign exchange markets are open simultaneously. Conversely, orders tend to be less likely to be executed when only minor foreign exchange markets are open
When you're trading, be sure to check which foreign exchange market is open
Turn off unnecessary features on the platform
A key to improving the execution speed of overseas forex brokers to turn off unnecessary features on the platform .
Displaying many indicators on the platform or having many charts open can put a load on the system and potentially affect the execution speed
Therefore, it is necessary to minimize system load by turning off all functions except those that are essential
To improve order execution speed, let's increase the platform's processing speed
Frequently Asked Questions about the Execution Capabilities of Overseas Forex Brokers
Here are three frequently asked questions about overseas forex trading
- Is there a difference in execution speed between domestic and overseas forex brokers?
- What does "100% execution rate" mean?
- What are the times of day when execution power tends to decrease?
Let's check the items that interest you
Q. Is there a difference in execution speed between domestic and overseas forex trading?
There are differences in execution capabilities between domestic and international transactions
Generally speaking, overseas forex brokers are said to have better execution speeds
In domestic FX trading, even major brokers have execution rates in the 80% range, whereas overseas FX brokers almost always have execution rates in the high 90% range
This is mainly due to the difference in trading methods: domestic FX uses the DD system (a system where a broker acts as an intermediary between the trader and the interbank market), while overseas FX uses the NDD system (a system where traders can trade directly in the interbank market)
If you prioritize execution speed, you should choose overseas forex trading
Q. What does "100% execution rate" mean?
"100% execution rate" means that all orders are executed at the price you ordered
In this context, "execution power" is almost synonymous with "execution rate."
For more details on execution power and execution rate, please refer to the section in this article titled "What is execution power in the first place? It is the ability to execute trades at the target price."
Q. What are the times of day when execution power tends to decrease?
During periods of low trading volume in the foreign exchange market, execution power tends to decrease .
For example, the period around 6-7 AM Japan time is known as the Oceania market, and because global trading volume is lower compared to other times, price fluctuations are more likely to occur, and execution speed tends to be lower
Summary of execution capabilities of overseas forex brokers
This article provides a detailed comparison of overseas forex brokers with high execution capabilities and explains the key points for evaluating execution performance
Here's a summary of this article:
- Execution power refers to "the ability to execute a transaction at the price you intended."
- Execution capability is also related to factors such as execution rate and execution speed
- Low execution power makes slippage (where an order is executed at a price different from the order price) more likely
- Execution speed is an important factor in scalping trading
- Execution speed varies depending on the trading method, with FX brokers using the NDD (No Dealing Desk) method generally having higher execution speed
- Choose an overseas forex broker with high execution speed based on reviews and publicly available information
When trading with overseas forex brokers, it's easy to focus on spreads and maximum leverage, but execution speed significantly impacts trading plans and profits
When choosing an overseas forex broker, be sure to carefully check their execution capabilities as well
