When you place a stock trade, it doesn’t just disappear into the void. Behind every buy or sell order is an exchange, a regulated marketplace where orders meet and prices are set. Modern exchanges use electronic matching engines that pair bids and offers in milliseconds, often prioritizing the best price and earliest time. This process keeps markets fair and transparent, but it’s only one part of the equation. Before you sign up with any broker, you need to know how your orders will be routed and executed. Does the broker send your trades directly to an exchange, or does it use a market maker? Are you getting the best available price, or is there a hidden markup? Understanding these mechanics helps you avoid surprises later. At BrokerCue, we encourage investors to dig into the details. A broker might offer zero commissions, but if its order routing practice leads to wider spreads or slower execution, the hidden cost can be higher than you think. Start by asking: ‘Which exchanges and execution venues do you use?’ and ‘Do you publish execution quality reports?’ Also, consider risk management. Our guide, ‘Value At Risk Retail Investors What Var Does And Misses,’ explains how a popular risk metric works and why it doesn’t capture every market twist. That awareness can help you choose a broker with the tools to protect your portfolio. Ultimately, your broker is your gateway to the exchange. By asking the right questions about trade execution, routing, and risk controls, you empower yourself to invest with greater confidence. BrokerCue makes it easy to compare brokers side by side on these factors, so you can find the one that aligns with your long term goals and stay calm through market ups and downs. https://brokercue.com/blog/value-at-risk-retail-investors-what-var-does-and-misses/
