Smart order router has a particular significance in relation to IG's platform. Here, we define smart order router in general investing and explain what it means to you when trading with IG.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
A smart order router (SOR) is an automated process used in online trading that follows a set of rules when looking for trading liquidity. The goal of an SOR is to find the best way of executing a trade.
Most major institutional investors and brokers will use a smart order router in order to find the best possible prices for trades as quickly as possible. Each smart order router will be set up according to different needs.
Smart order routers are often deployed as part of an automated trading system, though the level of automation involved varies between routers.
We use smart order routing (SOR) technology to search for liquidity across multiple venues, starting with 'dark pools' that offer mid-point matching – giving you the best possible chance of getting price improvements.