Playbook

Broker Selection for EAs

Your broker can make or break your EA's performance. Choose wrong and even a great strategy will fail.

11 min read

Beginner

Selection Criteria

Execution Quality

Execution Speed

Time from order to fill

<50ms for scalping, <200ms for swing

Slippage

Difference between requested and filled price

<0.5 pips average, rare negative slippage

Requotes

Order rejection requiring new price

<1% of orders, ideally 0

Order Types

Market, limit, stop, OCO support

Full range for your strategy needs

Costs

Spread

Difference between bid and ask

<1 pip on majors (ECN), variable is fine

Commission

Per-lot trading fee

$3-7 per lot roundtrip is standard

Swap/Rollover

Overnight holding cost

Compare if holding positions overnight

Inactivity Fee

Fee for dormant accounts

Avoid if possible, or keep account active

Regulation & Safety

Regulation

Oversight by financial authority

FCA, ASIC, CySEC, or equivalent tier-1

Segregated Funds

Client money held separately

Required - non-negotiable

Compensation Scheme

Protection if broker fails

FSCS up to £85k, similar schemes

Track Record

Years in business, reputation

5+ years, no major scandals

EA Compatibility

EA Allowed

Automated trading permitted

Explicitly allowed, no restrictions

VPS Location

Proximity to broker servers

Same data center or city available

API Access

Direct market access if needed

FIX API for advanced needs

Scalping Allowed

No minimum hold time

No restrictions on trade duration

Broker Types

ECN/STP

Orders passed directly to liquidity providers

Pros:

• Tighter spreads
• No dealing desk
• Better for scalping
• Transparent pricing

Cons:

• Commission on trades
• Variable spreads can widen
• Higher minimum deposits

Best for: Scalpers, high-frequency EAs, serious traders

Market Maker

Broker takes the other side of your trade

Pros:

• Fixed spreads available
• Lower minimums
• No commission option
• Guaranteed fills

Cons:

• Potential conflict of interest
• May not suit scalping
• Requotes possible

Best for: Beginners, small accounts, swing traders

Hybrid

Combination of ECN and market making

Pros:

• Flexibility
• Multiple account types
• Often competitive

Cons:

• Need to understand which model you're on
• May switch models based on your activity

Best for: Most retail traders, depends on account type

Broker Testing Process

Research regulation and reputation

Check FCA/ASIC register, read reviews (multiple sources), check for regulatory actions

Open demo account

Test platform stability, execution speed, spread during different sessions

Open micro live account

Test with smallest possible size ($100-500), verify real execution matches demo

Test during high volatility

Trade during news, observe spread widening, check for requotes

Test withdrawals

Make a withdrawal to verify process works, check speed and fees

Run EA for 1+ month

Verify consistent execution, compare results to expectations

Red Flags to Avoid

Unregulated or offshore-only regulation

No recourse if broker fails or cheats

Unrealistic bonus offers

Usually come with impossible withdrawal conditions

Spread/execution changes after initial trades

May be targeting profitable traders

Withdrawal difficulties reported

May not be able to access your profits

No physical office or address

Harder to hold accountable

Too-good-to-be-true conditions

Sustainable brokers need to make money somehow

Broker Checklist

Broker regulated by tier-1 authority (FCA, ASIC, CySEC)Critical

EA/automated trading explicitly allowedCritical

Tested with real (small) money, not just demoCritical

Withdrawal tested and verified workingCritical

Server location known, VPS proximity considered

No scalping restrictions if running scalping EA

Reviews checked across multiple sources

Spread and commission competitive for your strategy

5+ years in business with clean record

Common Mistakes

Choosing based on lowest spread only

Why: Cheap spreads mean nothing if execution is poor or broker is unreliable.

Fix: Prioritize regulation, then execution quality, then costs.

Not testing with real money before committing

Why: Demo execution is often better than live. You need real data.

Fix: Always test with micro account before depositing serious capital.

Ignoring VPS location relative to broker

Why: 100ms latency can make or break scalping strategies.

Fix: Ask broker for server location. Choose VPS in same city.

Assuming all brokers allow EAs

Why: Some brokers restrict automated trading or specific strategies.

Fix: Explicitly confirm EA trading is allowed before depositing.

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