What is best execution?

The term best execution refers to the legal/regulatory obligation imposed on brokers to make all possible efforts so to provide the best value for their clients when executing orders on their behalf taking into account the prevailing market characteristics. Such value may come from a combination of factors (depending on the market type and/or the client needs), but it mostly implies that brokers have to focus on providing a low (high) purchase (disposal) price, low fees and a high speed of execution (unless explicitly stated otherwise by the client).