What is A-Book Execution?
Quick Answer: A-book execution routes client orders to external liquidity providers, so the broker acts as an agent and earns commission instead of profiting from client losses.
What is A-Book Execution?
A-book execution is a brokerage model where your order is passed straight to external liquidity providers. The broker acts as an agent, charging commission or a small mark-up instead of trading against you. Because the broker does not benefit from your losses, this setup closely aligns the broker’s incentives with the trader’s success.
Key Traits
- Agency model: Orders are routed to banks, ECNs, or prime brokers rather than being internalized.
- Tighter pricing: Spreads reflect interbank quotes plus a transparent fee.
- Fewer conflicts: No dealing desk means fewer requotes and less chance of quote manipulation.
- Compliance friendly: Top-tier regulators often prefer true STP/ECN routing.
Tip
Ask potential brokers which liquidity providers they use and whether they publish fill-rate or slippage statistics. Consistent, low slippage is a strong sign of genuine A-book execution.
Evaluating A-Book Brokers
- Check regulation: Licenses from the FCA, ASIC, or CFTC add credibility.
- Compare costs: Add the commission to the raw spread to see your true cost per trade.
- Look for deep liquidity: Multiple Tier-1 LPs reduce slippage around news.
- Study reviews: Experienced traders can describe whether execution behavior matches A-book claims.
Related Terms
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