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BUSINESS NEWS - Execution speed of the broker refers to the time an order is made with a broker until it is carried out in real time on the market. When day trading, this is a crucial consideration, but it's trickier than it seems at first.

When market volatility is high, a trader's ability to execute orders quickly could mean the difference between making and losing money.

There are local aspects that you can control and parts of the order execution chain that are outside the broker's influence.

Order quality evaluates whether or not you made the best potential deal based on a variety of factors, such as speed, price, and likelihood of execution.

With all this to consider, here is a closer look at how to choose a broker with fast execution. 

Why does execution speed matter?

Consistency in a daily routine, waiting for the perfect trade, and the ability to learn from failures are the three foundations of productive trading, which every trader knows.

But speed is another factor to think about. Let's say you're looking at a chart and see that your preferred asset is close to breaking through a key resistance level. Once the breakout has begun, quick thinking and concentration are essential, as is the ability to act quickly.

A broker's execution speed is measured by how quickly they carry out your trade after receiving your order. Delays in processing orders result in lost revenue.

That's why how quickly trades are executed to your overall trading experience is so important. To this end, fast execution brokers, such as IFX Brokers, can make all the difference to your trading success.

The role of servers in fast execution speed

You can, essentially, make trades at a slower-than-normal speed. If you want to avoid large price swings, you should avoid trading when the market is volatile. Similarly, you can use limit orders to ensure that your trade will be performed at a certain price.

There are various trading possibilities during periods of volatility, but the best approach to guarantee a swift execution is to work with a broker who maintains stable servers.

Only the largest investment banks and hedge funds can compare to the power of IFX Brokers’ servers. Trades are executed in less time than it takes to blink using the broker’s best bid/offer aggregation system.

With the global trading environment becoming more competitive and turbulent, online trading systems and strategies are totally dependent on their execution infrastructure. Profit or loss now often depends on a fraction of a second.

All the best execution venues, bank trading servers, and buy/sell side companies are in the Equinix high performance data centre which powers IFX Brokers.

Through their connection to the Equinix Financial eXchange, IFX Brokers can tap into the largest variety of low-latency networks available. As a result, the broker can now share information openly with their key partners and clients.

Compared to a standard internet connection, optical fibre is universally acknowledged to be far quicker and more efficient. Using this, IFX Brokers can communicate with Integral players and tens of thousands of other service providers in a matter of micro milliseconds thanks to the Equinix optical fibre connection.

This implies that users can place orders from any location in the world and have them processed quickly and efficiently.

Also read: Important Factors to Consider Before Trading in Forex Market

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