Let's talk about the order execution speed ! !

10 Jan 2017, 09:23Let's talk about the order execution speed ! !#1
rickcuiposts: 5since: 07 Jan 2017

Hello all,

I found a very big issue of order ececution speed on the ctrader, I open ICMarkets demo ctrader account and using London VPS to connect, the latency is 2/3 ms, but the order execution speed is more than 200ms, see picture below:

latency

order exec speed

I could not believe this speed is under FIX API, so I opened another brokers demo ctrader account to test, there are Pepperstone, Fxpro, RoboForex, MaxFx, OctaFx, OMF, TradeView Markets, only Fxpro speed is 50-65ms, the others are all 200-300ms, so I want to know:

1: Why the execution speed is so low, even it's lower than MT4 demo account?

2: If I using the LD4/LD5 VPS, the exec speed whether improve?

3. If I open a real account, the exec speed whether improve?

Welcome to disscus this,thank you.

10 Jan 2017, 15:06#2
galafrinposts: 77since: 26 Jan 2013

On Live I get this : London-5 , 19/20ms,  164ms order filling 1700 km away. Wich is not that bad if you ask me.

12 Jan 2017, 11:46#3
rickcuiposts: 5since: 07 Jan 2017

Thanks galafrin's reply, I already open a real account of ICMarkets and using Beeksfx LD4 VPS, the connect speed is 2/2(London-3), but the live account order execution speed still is 120-160 ms, even my laptop computer(location is Shanghai China, Proxy is Jakarta-1) execution speed is 164 ms, I am confused, so may I ask Spotware, why the execution speed is so slow? And how could I improve the speed? Thanks a lot! 

12 Jan 2017, 17:03#4
Spotwareposts: 2830since: 23 Sep 2013

Hello, 

Thanks for posting an interesting question that gets asked frequently. 

Just because you have a great ping to the cTrader server (1/2ms) that doesn't mean execution time will be the same. This is just your ping to the server. Once your order reaches your brokers cTrader server there are a few milliseconds for processing then the order will be sent to your broker's liquidity provider. If the counter party who has the best price is in New York then an execution time of 100 to 200 ms is more than reasonable. 

It depends on many factors. Mostly the location of the bank / liquidity provider the order is routed to. 

Also it is worth noting that the execution speed on demo account is emulated, since orders don't really get executed - Demo account only pretends to execute them. 

All the best,

cTrader Team


TRADERS FIRST™ Vote for your favorite features: http://vote.spotware.com/
13 Jan 2017, 08:49RE:#5
rickcuiposts: 5since: 07 Jan 2017

Spotware said:

Hello, 

Thanks for posting an interesting question that gets asked frequently. 

Just because you have a great ping to the cTrader server (1/2ms) that doesn't mean execution time will be the same. This is just your ping to the server. Once your order reaches your brokers cTrader server there are a few milliseconds for processing then the order will be sent to your broker's liquidity provider. If the counter party who has the best price is in New York then an execution time of 100 to 200 ms is more than reasonable. 

It depends on many factors. Mostly the location of the bank / liquidity provider the order is routed to. 

Also it is worth noting that the execution speed on demo account is emulated, since orders don't really get executed - Demo account only pretends to execute them. 

All the best,

cTrader Team

Thank you Spotware, I got this, is that mean: if my VPS in London, and the brokers LP connected in London, the execution speed could reduce sub milliseconds?

If VPS in London, but the LP in NY, so the execution speed is higher than London?

Thank you again!

13 Jan 2017, 09:06RE: RE:#6
rickcuiposts: 5since: 07 Jan 2017

rickcui said:

Spotware said:

Hello, 

Thanks for posting an interesting question that gets asked frequently. 

Just because you have a great ping to the cTrader server (1/2ms) that doesn't mean execution time will be the same. This is just your ping to the server. Once your order reaches your brokers cTrader server there are a few milliseconds for processing then the order will be sent to your broker's liquidity provider. If the counter party who has the best price is in New York then an execution time of 100 to 200 ms is more than reasonable. 

It depends on many factors. Mostly the location of the bank / liquidity provider the order is routed to. 

Also it is worth noting that the execution speed on demo account is emulated, since orders don't really get executed - Demo account only pretends to execute them. 

All the best,

cTrader Team

Thank you Spotware, I got this, is that mean: if my VPS in London, and the brokers LP connected in London, the execution speed could reduce sub milliseconds?

If VPS in London, but the LP in NY, so the execution speed is higher than London?

Thank you again!

It should be "reduce to sub milliseconds", missing "to" word :-)

13 Jan 2017, 14:47#7
moneybizposts: 113since: 06 Dec 2011

I raised that question before and coldn't get a satisfactory answer.
After some research I found out that there are brokers with "Last Look" and without "Last Look" operations.
"Last Look" simply enables market makers to delay or reject trades from customers after they’ve agreed to a quoted price. This is something that brokers may abuse for their advantage!
I think the significant delay could be from that.
Brokers are not transparent on that issue and nobody exactly knows what's going on inside.
There are brokers without last look but they don't support cTrader.

13 Jan 2017, 16:21Execution time#8
krickaposts: 340since: 13 Mar 2013

The execution time in the platform is very normal in a retail platform. MT4 has it and also most all of the other well-known platforms as well.

This is a so-called a window so the brokers have enough time to hedge the bets and execute the order. cTrader is no exception and we would love the current execution time of 150-250ms to come down to around 100ms. Something for the Spotware Team to work on, to make it happen.

That is why protecting for the individual traders is so important with proper risk & money management and cBots to give us an edge, and the correct information when needed.  RMMRobot.com is dedicated to this task and we have several free cBots for download that can be run on both demo and live accounts without any restrictions.

RMMRobot.com  


http://rmmrobot.com
03 Feb 2017, 03:16#9
isomorph.0posts: 13since: 03 Feb 2017

yes this is interesting to say the least.  as i am currently looking for a new broker, and since i like the cTrader superior UI, this is an issue to address.  

i question the point made by the Spotware rep, which is valid ONLY IF the said counterparty is not one of the major LPs.  what i mean is this:

all LPs in the following categories:  Tier 1 and Tier 2 banks, major quantitative funds and hedge funds, institutional ECNs, major PBs and PoPs all have a presence in both NY and London at the very least (most will also have a presence in Tokyo); further, all institutional aggregators and ECNs such as Integral, Currenex, EBS, FXAll, HotSpotFX, FastMatch, BARX FX, ParFX,  GAIN GTX, FXSpotStream, etc, will have a connectivity presence in all major Equinix data centers: NY, London, and Tokyo.

so i do not understand why a retail client's order should get matched to a counterparty in NY if the order is issued on the London server. that would be extremely poor routing when all the necessary liquidity is already there available at Equinix London.

and then you have the problem of last-look. but that only applies for orders larger than 100M notional on the majors.  there is huge and thus plenty of liquidity to execute against at volume levels from 10K to 100M on all majors. so last-look should not be a cause of execution delays for the average retail size order.

to conclude:  here's an interesting fact:  trading from the East coast of North America with Darwinex who only has server at Equinix London data center, the execution remains consistently stable at around 100ms when orders are filled on the LMAX MTF. LMAX enforces a no-last-look policy.  

so, Spotware rep, could you please comment on this?

03 Feb 2017, 04:21#10
isomorph.0posts: 13since: 03 Feb 2017

i forgot to add an example to illustrate what i was talking about:  look at ParFX ( https://www.parfx.com/about-us/ ) and click on the link that opens their PDF, which is where this quote below comes from.  note how access to liquidity is globally distributed, hence there is no such latency issues as mentioned above (orders in London being matched in NY--what nonsense!)

 

ParFX has been designed by Tradition, one of the world’s largest interdealer
brokers in over-the-counter financial and commodity-related products, in
conjunction with a group of the world’s leading FX banks.
ParFX’s unique matching mechanism applies a meaningful randomised pause
to all order submissions, amendments and cancellations. This firms liquidity by
creating a genuinely level playing field for all participants regardless of
technological sophistication or financial strength. Randomisation is
configurable by currency pair and all trade attributes to allow optimisation and
ensure adaptability of the trading environment.


Key platform benefits include:


 Enhanced trade cycle transparency – lit pre-trade, full disclosure post-trade
 Low-cost and easy access through industry-standard FIX protocol API
 Democratic incorporation of trading costs into actual transaction
 Transparent trading pricing set equally for all users
 At-cost market data distributed in parallel to all active participants
 Pro-competitive – increases competition among trading venues through
high-quality and efficient execution at aggressive and fair prices

 


Key platform features include:


 Global, single site access to electronic spot FX in 27 currency pairs
 Available to any participant with access to CLS settlement services
 Bilateral credit allocations
 Counterparties fully disclosed post-trade
 Powered by Tradition’s resilient, flexible, market-leading proprietary
technology


ParFX is open to all professional institutions able to settle via CLS and provides
those participants with a genuine interest in trading with a low-cost,
convenient and equitable venue for sourcing FX liquidity.