Execution Model

A broker's execution model is how your order becomes a filled trade: whether it is passed to external liquidity, matched internally, or filled by the broker taking the other side. It decides where the conflict of interest sits. A broker that internalises your losing trade profits from it directly; one that routes to a liquidity pool earns from spread and commission regardless of your result. Neither model is inherently dishonest — internalisation is normal for small orders and often gets you a better fill — but you should know which one you are on, because it explains requotes, slippage patterns and why your scalping strategy was restricted.