Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

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Konstantin Boykachev

CEO Proforexea LLC

Honest Coder

Professional Trader

Blog Post

How to determine the speed of order execution and whether a broker has slippage

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Order execution speed

The speed of order execution is one of the key trading conditions of the broker. For example, you have opened a 1 lot deal for the EUR / USD pair. The pip value in this case will be $ 10. You see the price of opening / closing a deal you are interested in, but another trader sees the same price. There is only 1 lot volume on the market and it will be the first to be taken by the one from whom the broker processes orders faster and transmits information.

Question: how to check the real speed of order execution?

How to check the reality of the trading conditions declared by the broker

Almost every broker claims that it has the highest order execution speed, and therefore the lowest slippage. Or they don’t exist at all. The average speed is 200-400 ms, but some brokers go further – they declare a speed of 40-100 ms, which is practically impossible for an ordinary intermediary to implement. In addition, the execution of orders depends on the current liquidity of the market – if the volumes of transactions are relatively large, there are many buyers and sellers, then transactions are executed almost instantly.

With a drop in liquidity, the speed of transactions also decreases, because the conditions declared by brokers are the best conditions that can only be in a market state close to ideal.

In reality, the trader gets a speed several times lower than that provided by the trading conditions. If he does not have time to complete a deal at the desired price, he has to agree to the next one in the depth of market, slippage occurs. And the slower the order execution speed, the greater this slippage.

Believe the broker or not? And how to determine how quickly orders are fired?

  • Download and install the script for MT4 OpenOrderTime. You can find its template on the MQL5 website, but if you need help, write about it in the comments, we will definitely help you.

The script is installed as a regular indicator through the menu “File / Open Data Directory” to the MQL4 / Scripts directory. Then we restart the platform and in “Service / Settings / Expert Advisor” specify the permission to apply algorithmic trading. Look for descriptions of other interesting scripts in the review “Best Scripts for Forex”.

We launch the script and after a few seconds a report appears in the MQL4 / Files directory:

slippage

Click on the picture – it will enlarge.

Order opening speed – 1328 ms, closing – 1422 ms. A sad situation, which is in no way suitable for an ECN account, where the speed should be no more than 400 ms. The coincidence of the Request Price parameters with the open and close prices indicates that there is no slippage. In this case, a Request Price was sent to open, which was immediately executed. But the closing price with the Request Price does not coincide by 7 points in five-digit quotes. This is a big slippage for an ECN account and trading large positions.

Output: This account is not suitable for professional trading and is not an ECN account. Trading conditions for this account are far from the market average and trading on it is not recommended – open another type of account or look for a new broker.

Script settings:

slippage-2

  • CloseAfterOpen. If true, the order opened by the script will be closed automatically in a second. If false, there will be no automatic close.
  • Operations. The number of orders opened by the script.
  • Delay. Pause between opening orders in milliseconds.
  • LotSize. The volume of the transaction.
  • SL / TP. Stop and take profit values. If, due to the broker’s limitations, the report is not generated, put zeros in these parameters.
  • SlipPage. Maximum slippage for Instant Execution accounts.

The indicator can be launched at any time, but consider the spread. It will be especially useful at the time of a sharp increase in volatility or widening of the spread. If you see slippage – roll up trades and wait until this period ends. The report will be useful for you to argue problems with the speed of order execution when communicating with the support team.

Ask questions in the comments!

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