Reading the order execution policy nobody opens
Posted: Mon Nov 02, 2026 8:33 pm
Reading the order execution policy nobody opens
Every regulated broker has a best execution or order execution policy. It sits in the legal documents, usually a PDF with a long title. Most clients never open it.
It is worth the twenty minutes. The policy says how orders are routed, whether the broker acts as principal or agent, how slippage is handled, whether last look applies, and what the broker's obligations are.
Some policies reveal that the broker is the counterparty to every trade, which changes how its incentives look. Others state that orders are passed to external providers, with details about how prices are formed.
The document may also describe how the broker treats price improvement and negative slippage, what happens during news, and under what conditions orders can be rejected.
A scalper who reads it knows what to expect and what to ask. A mismatch between the policy and actual experience is a legitimate complaint, and the document is the evidence.
Many policies also include a section on conflicts of interest. It tells whether the broker profits when clients lose, how it manages that, and what protections are in place.
What does the execution policy say about slippage and rejections, and does the experience match?
Every regulated broker has a best execution or order execution policy. It sits in the legal documents, usually a PDF with a long title. Most clients never open it.
It is worth the twenty minutes. The policy says how orders are routed, whether the broker acts as principal or agent, how slippage is handled, whether last look applies, and what the broker's obligations are.
Some policies reveal that the broker is the counterparty to every trade, which changes how its incentives look. Others state that orders are passed to external providers, with details about how prices are formed.
The document may also describe how the broker treats price improvement and negative slippage, what happens during news, and under what conditions orders can be rejected.
A scalper who reads it knows what to expect and what to ask. A mismatch between the policy and actual experience is a legitimate complaint, and the document is the evidence.
Many policies also include a section on conflicts of interest. It tells whether the broker profits when clients lose, how it manages that, and what protections are in place.
What does the execution policy say about slippage and rejections, and does the experience match?