Who is responsible for your trade executions in Forex?

Since I worked with bridges and many other systems inside a Forex brokerage, I will fully explain it.

What happens when we execute a Trade?

When you request to open a trade (whether it is MT5, cTrader, or any other platform), your request passes through several separate layers before reaching its final destination.

Assume you buy 1 lot of EURUSD in MetaTrader 5:

• First layer: Your computer and your ping.
  Yes, if your ping is high, your trade may be delivered when the requested price no longer exists.
• Second layer: The trading platform server.
  The broker manages the server of that platform. Your trade goes to the MetaTrader server that the broker runs. If there is a server issue, your trade will not reach its final destination.
• Third layer: The bridge.
  Some brokers use a bridge, which is responsible for trade execution rules.
  A broker may have different symbols for the same asset (for example, XAUUSD and XAUUSD@).
  They may also have different commission and spread rules (some accounts have lower commissions, others have lower spreads).
  The bridge is responsible for clustering and routing your trade within about one millisecond.
  If a trade is rejected due to a bridge problem, it is still the broker’s responsibility because the broker chooses which bridge to use, pays for it, and configures it.
• Fourth layer: The liquidity provider (LP).
  The liquidity provider is responsible for accepting trades. This part can be tricky because it differs between brokers.

If a broker chooses a lower-tier liquidity provider that offers high leverage or very low spreads most of the time, that liquidity provider may itself be using other liquidity providers.

Based on this, we can see that even a millisecond execution passes through multiple layers.

How to Choose a Reliable Forex Broker

The final correct answer is that the broker is responsible overall. However, it is important to understand that some brokers face technical problems and do not intend to harass traders. Their decisions regarding bridges or liquidity providers may cause execution issues.

So, make sure you carefully choose your Forex brokerage.