What is execution only?
Execution only is a service in which a broker simply carries out a client’s buy and sell orders without giving any advice or recommendations.
The trader makes all the decisions themselves, and the broker’s role is limited to processing those instructions.
In simple terms, execution only means the broker acts on your orders without advising you.
How execution only works
Under an execution-only arrangement, the client decides what to trade, when and how much, based on their own research. The broker does not assess whether a trade is suitable or offer guidance on it. This model is common among self-directed traders who prefer to manage their own decisions and often comes with lower costs than advised services.
Who execution only suits
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Self-directed traders who do their own analysis
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Those who do not want or need advice
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Cost-conscious traders
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Experienced market participants
Execution only compared with advised services
| Feature |
Execution only |
Advised service |
| Advice given |
None |
Yes |
| Decisions made by |
The client |
With guidance |
| Typical cost |
Lower |
Higher |
Execution only versus an advisory service
Brokerage services broadly fall into two camps. An advisory or managed service offers recommendations or makes decisions on a client’s behalf, typically for a higher fee. An execution-only service simply carries out instructions, with no guidance on suitability, usually at lower cost. The trade-off is responsibility: with execution only, researching and understanding each trade falls entirely to the client. It tends to suit self-directed, experienced traders rather than those who want closer support. Because there is no safety net of advice, execution-only trading tends to suit those who are confident interpreting research and managing their own risk. Newer traders sometimes begin with more support and move to execution only as their experience grows, while others lean on educational resources to build the knowledge the service assumes they already have. It is also worth checking exactly what an execution-only provider includes, since services and costs can vary between brokers even when the label is the same.
Responsibility rests with the client
Because no advice is provided, the responsibility for every decision rests entirely with the trader. This suits those confident in their own analysis but means there is no professional check on whether a trade is appropriate. Traders using an execution-only service should be comfortable researching and managing their own positions, and should remember that all trading carries risk.
Execution only in action
Suppose a trader uses an execution-only broker. The broker carries out the trades they instruct but offers no advice on whether those trades are suitable. This usually means lower costs and suits people who prefer to make their own decisions, provided they are comfortable researching each trade themselves.
When an execution-only service fit
Execution only gives self-directed traders control and often lower costs, in exchange for taking full responsibility for their decisions. Understanding what the service does and does not include helps traders choose the right approach for them, while keeping in mind that trading without advice still carries the full risk of loss.
Risk Warning:Trading CFDs involves significant risk and may not be suitable for all investors. Losses can exceed your initial deposit. Please ensure you fully understand the risks involved before trading.
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