Best execution: what role do FX algos play?

Market participants are increasingly incorporating FX algos in their best execution process, but this doesn’t mean they are the right option every time.

The use of execution algorithms in the FX market has increased significantly over recent years and it would appear that this trend is set to continue for the foreseeable future. This is partly due to the growing focus on best execution.

Under the MiFID II European directive, best execution requirements mandate firms to take all sufficient steps to obtain the best possible result for their clients, taking into account a variety of factors.

However, this is unlikely to be the only reason for the surge in interest.