Understanding how orders are executed is critical for every forex trader. This guide breaks down Forex.com's execution policy — covering slippage, requotes, market vs instant execution, and how to evaluate whether this broker's model suits your trading style.
Forex.com (a brand of GAIN Capital Holdings) is a well-established retail forex broker regulated in multiple jurisdictions, including the US (CFTC/NFA), UK (FCA), Australia (ASIC), and others. Their execution policy defines how client orders are processed, filled, and managed — including the handling of slippage and requotes.
Forex.com operates primarily as a market maker (dealing desk) for most retail accounts, meaning they take the opposite side of client trades. However, they also offer Direct Market Access (DMA) accounts for clients who want agency execution with access to interbank liquidity providers. The execution model you choose directly affects how often you experience slippage and requotes.
Key distinction: Forex.com's execution policy is not uniform across all accounts. Standard accounts use a dealing desk model with variable execution outcomes, while DMA accounts (often requiring higher minimum deposits) route orders directly to liquidity providers with transparent execution.
According to the Bank for International Settlements (BIS) Triennial Survey, the global forex market averages over $9.6 trillion in daily turnover. At this scale, execution quality varies by broker, liquidity provider, and market conditions. Forex.com's execution policy is designed to balance price stability with speed, but traders should understand its mechanics to manage expectations.
The CFTC and NFA require brokers to provide clear execution disclosures. Forex.com's execution policy is documented in its order execution policy, which clients are encouraged to review before trading. Always verify the current policy directly with the broker.
Slippage occurs when a trade is executed at a price different from the one requested. It is a natural consequence of market dynamics and can happen with any broker, including Forex.com.
Slippage can be positive (favourable) or negative (adverse). For example, if you place a buy order at 1.1000 and it executes at 1.0995, you have experienced positive slippage — you got a better price. Conversely, if it executes at 1.1005, you experienced negative slippage. While positive slippage is possible, negative slippage is more common during high-volatility events.
Important: Slippage is not a "fee" charged by the broker. It is a market phenomenon. However, the frequency and magnitude of slippage can vary significantly between brokers and execution models. Forex.com's dealing desk may manage slippage differently than a pure ECN broker.
A requote is a prompt from the broker asking you to accept a new price because the price you requested is no longer available. Requotes are most common with Instant Execution accounts, where the broker attempts to fill your order at a specific price.
With Instant Execution, you request a specific price (e.g., buy EUR/USD at 1.1000). If the market moves away from that price before your order reaches the dealing desk, the system cannot execute at 1.1000. Instead, it presents you with a requote — a new price (e.g., 1.1002) and asks you to accept or reject it.
Tip: If you are frequently experiencing requotes, consider switching to a Market Execution account or a DMA account, where orders are filled at the next available market price without requotes (though slippage may still occur).
Forex.com offers two primary execution models, each with distinct characteristics regarding slippage and requotes.
With Market Execution, you do not specify a price. Instead, you place an order that is filled at the best available price at the time of execution. The broker guarantees that your order will be filled, but not at a specific price.
With Instant Execution, you request a specific price. The broker attempts to fill your order at that exact price. If the price is no longer available, you receive a requote.
Which model is better? It depends on your trading style. Scalpers and news traders often prefer Market Execution for speed, while traders using limit orders or who value price certainty may prefer Instant Execution. Forex.com's DMA accounts offer a hybrid model with agency execution, reducing conflicts of interest.
This table summarises the key differences between the execution models available on Forex.com.
| Feature | Market Execution (Standard) | Instant Execution (Standard) | DMA / Agency Execution |
|---|---|---|---|
| Price Control | Fills at best available price | Request specific price | Fills at interbank prices |
| Requotes | None (no requotes) | Frequent in volatile markets | Rare (slippage instead) |
| Slippage | Possible, both positive and negative | Less common (requotes instead) | Possible, transparent |
| Fill Certainty | High (guaranteed fill) | Low (may be requoted) | High (subject to liquidity) |
| Conflict of Interest | Dealing desk (market maker) | Dealing desk (market maker) | Agency (no dealing desk) |
| Best For | Scalpers, news traders | Limit order traders | Professional traders, transparency seekers |
Note: DMA accounts often require a higher minimum deposit and may have different pricing (commission-based vs. spread-based). Check with Forex.com for current account offerings.
Use this checklist to assess whether Forex.com's execution policy aligns with your trading needs.
EEAT note: The CFTC and NFA provide retail forex education materials, including guidance on execution quality and risk disclosure. They also maintain registration and disciplinary records of forex brokers. Always verify current regulatory status.
Scenario — NFP Release (Non-Farm Payrolls)
Trader Sarah has a standard account with Forex.com using Market Execution. She places a buy order on EUR/USD 5 seconds before the NFP announcement, expecting a strong breakout. The NFP number exceeds expectations, and EUR/USD jumps from 1.1000 to 1.1020 in the first 2 seconds after the release.
Sarah's market order is executed at 1.1015 — she experiences 15 pips of negative slippage. However, her order was filled immediately, and she captured the move. A friend using Instant Execution on the same broker attempted the same trade but received a requote at 1.1020, which he rejected because the price had already moved away from his limit. He missed the trade entirely.
Takeaway: Market Execution provided speed and fill certainty at the cost of price slippage. Instant Execution offered price control but at the risk of requotes and missed opportunities. The better choice depends on Sarah's priority — speed or price precision.
This scenario illustrates why understanding your execution model is essential, especially during high-impact news events. According to the Federal Reserve, major economic releases can cause significant short-term volatility, making execution quality a critical factor for traders who trade these events.
Forex.com is registered with the CFTC and is a member of the NFA (ID: 0271200). The NFA's BASIC database provides access to the broker's registration, disciplinary history, and financial information. In the UK, Forex.com is authorised by the FCA (reference number 190864). Clients are encouraged to verify the broker's current regulatory standing through these official channels.
The Bank for International Settlements (BIS) and the Federal Reserve publish data on forex market liquidity and volatility, which can help traders understand the market conditions that drive slippage and requotes. The CFTC also provides educational resources on retail forex risks and execution quality.
Always verify: Execution policies, margin requirements, and account terms can change. Review Forex.com's latest order execution policy and risk disclosures on their official website. This guide provides educational information and does not constitute financial, legal, or tax advice.
Forex.com offers two primary execution models: Market Execution (most common) and Instant Execution. Under Market Execution, orders are filled at the next available market price, with slippage possible. Instant Execution attempts to fill at a specific price but may generate requotes if the price moves. Forex.com operates as a market maker with a dealing desk, but they also offer agency execution on certain accounts.
Slippage is the difference between the expected price of a trade and the price at which it is actually executed. It typically occurs during periods of high volatility or low liquidity, when market prices move between the time an order is placed and the time it is filled. Slippage can be positive (in your favour) or negative (against you).
A requote occurs when Forex.com cannot fill your order at the requested price because the market has moved. The platform prompts you to accept a new price before the order is executed. Requotes are more common with Instant Execution and during volatile market conditions. Market Execution accounts typically experience slippage instead of requotes.
Yes, Forex.com operates a dealing desk for most retail accounts, acting as a market maker. This means they take the opposite side of client trades. They also offer a Direct Market Access (DMA) account for certain clients, which provides agency execution with access to interbank liquidity providers, reducing the frequency of requotes and potential conflicts of interest.
To minimise slippage: avoid trading during major news releases and market opening times, use limit orders instead of market orders (they guarantee a price but may not execute), trade during liquid sessions like London-New York overlap, and consider using a DMA account. Additionally, keep your order size reasonable to avoid liquidity gaps.
No. Slippage can be positive (favourable) or negative (adverse). Positive slippage occurs when your order executes at a better price than expected. For example, if you place a buy order at 1.1000 and it fills at 1.0995, you have experienced positive slippage. However, negative slippage is more common, especially during volatile market conditions.
Requotes can be frustrating because they delay order execution and may cause you to miss trading opportunities, particularly in fast-moving markets. Frequent requotes can also erode confidence in the broker's execution quality. However, they are a sign that the broker is trying to give you price certainty before filling your order, rather than executing at an unfavourable price.
Key factors to evaluate include: the speed of execution, the frequency and magnitude of slippage, the occurrence of requotes (if using Instant Execution), the transparency of execution reports, and the availability of negative balance protection. Also, verify that the broker's execution model aligns with your trading style. Forex.com's execution quality is widely considered reliable, but its dealing desk model means it has a potential conflict of interest.