How markets work
Best execution
A broker’s regulatory duty to seek the most favourable overall terms reasonably available for your order.
How it works
Best execution is not simply the best price. Regulators define it across price, cost, speed, likelihood of execution and settlement, and size — so a broker can justify a route on grounds other than headline price.
Brokers publish execution quality statistics. They are dry, rarely read, and the only public evidence of whether the routing arrangement is working for customers.
Related terms
- Payment for order flowA broker being paid by a trading firm for the right to execute its customers’ orders.
- BrokerThe firm that holds your account and sends your orders to the market on your behalf.
- SlippageThe difference between the price you expected and the price you actually got.
- ExchangeA regulated marketplace where buyers and sellers of securities are matched under published rules.
More in How markets work
- Bid-ask spread
- Average daily volume
- Circuit breaker
- Auction
- Closing price
- Algorithmic trading
- Contract note
- After-hours trading
All 33 How markets work terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.