A legal obligation requiring brokers to execute client orders on the most favorable terms available in the market. Firms must exercise “reasonable care” to secure the best possible result for the client, considering factors like price, speed, likelihood of execution, and total cost. Regulators (e.g. EU MiFID, US CFTC/NFA) mandate best execution policies, meaning that a broker’s execution process and venues must be designed and monitored to protect the client’s interests.

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