⭐ Instant vs Market Execution

Instant Execution Market Execution
Dealing Desk (DD) No Dealing Desk (NDD)
Instant Execution is a feature of a Dealing Desk broker
Market Execution is offered by No Dealling Desk brokers
Price quotes come from Broker Price quotes originate in the Market
Forex Broker acts as a Marker Marker and "makes market" by creating own prices
Forex Broker receives prices from Liquidity Providers
Order filled at the exact price requested Order filled at the current market price
If an order cannot be filled at the exact requested price, it's cancelled
If order cannot be filled at requested price, it gets filled at the next available price
Price cannot improve Price can improve
Order either filled or killed (FoK order type)
Price can improve in trader's favor, as well as become less attractive
Spreads are usually higher Spreads are tight
Dealing desk brokers are known to charge higher spreads
Spreads with a No dealing desk broker starts as low as 0 pips
Fixed spread Floating spread
Instant execution comes with fixed spreads
Market execution always comes with floating spreads
No commission Possible commission
Dealing desk brokers don't charge commission
With DMA & ECN brokers - commission applies.
STP brokers might not charge commission
Requotes No requotes
Requotes are common, more so during volatile/fast moving markets
Requotes are eliminated, since orders can always be filled at next available price
No slippage Slippage
Slippage not possible. Some brokers might allow setting "price deviation" to accept minor shifts in price
Slippage is normal part of trading with Market Execution. Slippage occurs every time price shifts from originally requested. Slippage can be in trader's favor, as well as against
Stops & Profit levels can be set in advance Stops & Profit levels cannot be set in advance
Instant execution allows setting Stop Loss and Take Profit orders prior to placing a trade
Stop loss and Take profit orders cannot be set prior to order placement, only after a trade is open
Execution is not guaranteed Execution is guaranteed
Execution depends on brokers' ability to accept & counter-trade position
Execution depends on liquidity providers, where liquidity is often plenty
Option to refuse new price quote Automatic fill on all orders
If price is re-quoted, traders can refuse the new price
Orders filled automatically at current available market price
Slower execution speed Fast execution speed
Order execution takes few seconds
Order execution done in fractions of seconds
Restrictions on trading styles Unrestricted trading
Possible restrictions on trading styles: scalping, certain EAs, news trading etc
No limits on trading styles, as a rule (double-check with your broker)

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