Order execution model of IFC Markets
Best execution means that when a broker executes a client order, it needs to offer the best execution possibility.
IFC Markets is responsible for providing the best trading conditions:
- Order Execution – Instant Execution
- Pricing – strict fixed and floating spreads
- Volume – any volume (minimum 0.001 lots)
1. Mixed execution of customer orders
The quotation provided by the company to the customer is automatically formed by the best price from the liquidity provider. The quotation is a fixed spread.
The client sends an application to execute the order according to the quotation
The IFC Markets company follows a hybrid model that executes customer orders based on trading volume.
a) Small transaction volume below 1 million.
The order is executed immediately according to the platform price, and is added to form a larger order and submitted to the liquidity provider for hedging.
For customers, there is no delay, and the risk of changes in the liquidity provider’s price is borne by IFC Markets.
And most small orders are The direction is reversed so that the internal hedging is zero, and only a small number of orders are combined into large orders and hedged.
This increases the reliability of IFC Markets’ scheme.
b) Customer orders with transaction volume greater than 1 million and less than $10 million.
Orders are executed instantly at the platform’s price and are automatically hedged at liquidity providers.
This is STP straight-through processing.
No delay. Changes in liquidity provider prices are at IFC Markets’ risk.
c) Bulk order execution (over $10 million)
The order enters the company’s server and is immediately received by the liquidity provider, confirms the possibility of executing the trade (if the price remains unchanged) and executes the trade.
The client terminal receives information about the completed trade. Direct access to the DMA market is implemented here.
In this scenario, there may be delays and re-quotes by liquidity providers.
IFC Markets’ order fulfillment service is not only comfortable for the customer, but also safe for the company.
2. Fixed and floating spreads
The company offers fixed and floating spreads (depending on the account type you choose).
Most all instruments support floating spreads.
The fixed spread avoids the volatility of the spread per minute – this is equivalent to a benefit to the client, because the company takes the risk of volatility on itself.
Clients can trade on fixed spreads instead of placing orders directly to the market – for medium and larger For small volumes, IFC Markets’ approach is to execute and then automatically transfer the position to a liquidity provider (this model is compliant with IFC Markets’ regulations and licenses).
Among scalpers, clients can use their own trading strategies more precisely.
The floating spreads at the opening are not so large compared to most fixed ones, which is very convenient for intraday trading.
3. Slippages and Requotes
For small and medium volume orders, there will be no requotes, as there is no need to wait for an answer from the liquidity provider – these orders are filled directly by the company.
Requotes will only be done in case of major news or bad network because The price has changed during the process from the trading platform to the company’s server.
Customers can set the allowable price slippage on the platform in advance.
If the quoted price changes, but is within the allowable slippage range, then the order will be executed according to the new quoted price without requoting.
For large trading volumes (more than 10 million US dollars), re-quotes may occur when news releases or market fluctuations fluctuate greatly, so the order is executed by the liquidity provider.
4. Execution of market orders, limit orders, stop orders and news-based trading
Market orders with average trade volume are executed at the platform’s price. Large trades over $10 million go to the liquidity provider.
Limit orders are executed at the client’s price or better.
A stop-loss order is executed at the client’s price, and after a price, disconnection occurs, at the price at which the market first appeared.
Clients can use any trading strategy, including wave scalping, based on news trading.
Under news and unexpected events, the price may fluctuate and disconnect.
In such cases, the order will follow the first after disconnection. The price of the second occurrence is executed.
The first price appears, according to the rules, requires the confirmation of the second price, so in such a case, there may be a delay.
Because the market needs to calm down and give the first after disconnection price.