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Market Execution vs Instant Execution in MT4




MT4 STP vs MT4 Dealing desk


STP brokers use Market execution, which doesn't allow stop loss and take profit orders to be specified & set at the moment of placing a new trade. SL and TP orders can be added only after the trade is open, so that the price of the open position is already known. A trader then needs to modify an existing trade to add stops and profit targets.

Dealing desk brokers use Instant Execution, which allows stop loss and take profit orders to be set with the initial entry order.

A trader writes:

I noticed that some of the brokers disabled instant execution from the MT4
platform, jadefx, Iamfx, fxcbs, gallantfx, etc... i.e, before with the
instant execution option you could enter the trade with a stoploss amount.
Now they replaced it with Market execution or pending order option. So if
you choose market execution they have the stoploss option greyed out and you
have to then enter trade without a stoploss. Then you have to modify the
order to add a stoploss. I don't like this one bit. It's like walking a
tightrope without a safety net. What happens if the market spikes before you
get a chance to modify it? Or you loose connection with broker before you add
a stoploss. Do you have any idea why they are doing this?
Thanks...

The answer is in MT4 ->STP (ECN) bridge technology, which doesn't allow Instant execution mode. Apparently, in STP technology they don't allow any modification to the order before it's filled.

Below is the document from MetaQuotes, where you can confirm it:
MT4 STP vs MT4 Instant (pdf) by Boston Technologies

You're right about risks that trades face when entering without stops. That can be viewed as a definite disadvantage of MT4 STP/ECN. Dealing desks brokers, on the other hand, provide Instant Execution.

Market Execution - STP

Instant Execution - Dealing desk

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Broker discussion area

trader

January 3, 2011

Forex 4 You is which type of broker STP or DD

BrokerGuru

January 20, 2011

Forex4you - STP.

trader

March 1, 2011

What about IntelFX, are they regulated?by who?are they save?

BrokerGuru

March 5, 2011

Intel FX is not regulated. They are a registered company FNZ Capital Ltd. (reg.# 2270095) in Auckland, New Zealand.

Is there such thing as a "safe broker"?
We're definitely not going to sort brokers to "safe" and "not safe" on this site. (It'll be unprofessional at the very least to give labels).

But we can help to evaluate brokers:

Normally, you'll look at the level of transparency, legal documents, history of known disputes.
In the end, what matters for every investor is the ability to withdraw deposits and withdraw profits, and, in case of the broker insolvency, be able to recover the funds.
Each point will add to a security level of the broker:
+1 for running the business as a registered company
+1 for being a regulated broker
+1 for keeping client funds on segregated accounts
+1 for having client funds additionally insured
+1 for keeping a clean record with no known disputes about withdrawals
+1 for providing exceptional professional support on each request

trader

March 8, 2011

Hi,
I want to know that mirror forex in india is genuine company or not
Its site is www.mirrorforex.in


BrokerGuru

March 8, 2011

They are a new company. No reviews, and a site is created in December 2010.
The link to account opening lands on a page that provides no information about account opening. Can't learn anything without it, sorry.

trader

April 22, 2011

I want to know if Fxpro is a good broker, i really want to be safe in starting up a forex career


BrokerGuru

April 24, 2011

We don't recommend/provide opinion on brokers on the site, I'm sorry, it's against website policies.

Broker regulation and registration information can be found here:
http://www.100forexbrokers.com/reviews-ratings/fxpro

You need to further read reviews about the broker on other sites to make own decision.

trader

May 21, 2011

pls i want to know which broker is good for news trading STP,ECN OR MARKERMAKER

BrokerGuru

May 22, 2011

trader

June 16, 2011

hello..why many STP brokers use instant execution?from what you wrote,it said that ONLY dealing desk brokers used that...

BrokerGuru

June 17, 2011

Correct. Instant execution is a main attribute of a dealing desk.
Market makers will use instant execution to fill your orders by taking the other side of your trade.
STP brokers will use instant execution to fill your orders on their side too, but those orders will be immediately passed thought/hedged with other market makers, so that a broker in the end doesn't have to worry if you lose or win, since he doesn't keep your trades on the dealing desk. Hence NDD. Right or wrong?

There are many debates about it. We try to highlight the essence and the principles of how each broker works.
If a broker claims to have no physical dealing desk, so be it; yet it has to be mentioned too, that many traders say: "Instant execution = dealing desk. End of story".
It's up to you to decide which side to take.



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