When traders evaluate brokers for running Expert Advisors (EAs), one metric often highlighted is execution speed. Broker comparison sites frequently publish speed tests, ranking platforms by how quickly they process trades. But the real question is: does execution speed truly matter for automated strategies, or is it just another marketing buzzword?
What Execution Speed Means
Execution speed refers to the time between when an order is sent from your trading platform and when it is confirmed on the broker’s server. In forex and CFD trading, this is typically measured in milliseconds. Faster execution reduces the risk of slippage. The difference between the expected price and the actual filled price. For human traders, this can be frustrating. For EAs, which rely on precise rules and often operate at high frequency, slippage can distort performance significantly.
Why Speed Matters for EAs
- Scalping strategies: Many EAs are designed to capture small price movements. Even a 100ms delay can mean missing the intended entry or exit.
- High-volatility conditions: During news events, prices can move several pips in a fraction of a second. A slow broker may fill your EA’s order at a much worse price.
- Backtest vs. live trading gap: EAs are often optimized using historical data where execution is assumed to be instant. In reality, execution delays introduce discrepancies between backtested and live results.
When Speed Is Less Critical
Not all EAs depend heavily on execution speed:
- Swing or position trading robots: These hold trades for hours or days, so a few milliseconds of delay rarely impact profitability.
- Risk management-focused EAs: Systems that primarily adjust stop-losses or manage exposure may not require lightning-fast fills.
- Spread-sensitive strategies: For some robots, the broker’s spread and commission structure matter more than execution speed.
Other Factors That Matter
Execution speed is only one piece of the puzzle. Traders should also consider:
- Broker reliability: Consistent uptime and stable servers are essential for EAs running 24/7.
- Compatibility: Full support for MetaTrader and unrestricted EA usage is critical.
- Liquidity and order routing: A broker with deep liquidity pools can reduce slippage even if raw execution speed isn’t the fastest.
- Regulation and trustworthiness: A fast broker is useless if it manipulates prices or restricts withdrawals.
The Balanced View
Execution speed tests are useful benchmarks, but they should not be the sole deciding factor. For scalpers and high-frequency EAs, speed is vital. For longer-term systems, spreads, commissions, and broker reliability may outweigh speed. Ultimately, traders should align broker choice with their EA’s strategy profile. A well-matched broker ensures that the EA performs as intended, minimizing the gap between theoretical backtests and real-world execution.