Definition
Reject rate measures the proportion of submitted orders that the broker's server refuses to execute. Rejections can take the form of outright rejections (order cancelled), requotes (broker offers a different price), or timeouts (order not processed within the allowed window).
In genuine NDD execution, rejections should be rare and primarily caused by legitimate liquidity constraints. Systematic patterns of rejection -- especially during profitable trades or fast market conditions -- may indicate dealing desk intervention.
Formula
Reject Rate = (Rejected + Requoted Orders) / Total Submitted Orders x 100%Includes all forms of non-execution: hard rejections, requotes (regardless of whether the requoted price was accepted), and order timeouts.
Rejection Types
Hard Rejection
The order is outright refused. The trader must resubmit manually. Most common during extreme volatility.
Requote
The broker offers a new price instead of filling at the requested price. The trader can accept or decline.
Timeout
The order sits in queue beyond the allowed window and expires. Often indicates server overload.
Partial Fill
Only part of the order is executed. While technically a fill, it indicates insufficient liquidity at the requested level.
Benchmark Ranges
| Rating | Range | Assessment |
|---|---|---|
| 0-1% | 0% -- 1% | excellent |
| 1-3% | 1% -- 3% | good |
| 3-5% | 3% -- 5% | fair |
| > 5% | Over 5% | poor |
Visualization
Reject rate comparison across execution models in our broker sample:
Red Flags
Warning Signs
- Reject rate increases significantly during news events or fast markets
- Profitable orders are rejected at higher rates than losing orders
- Requotes consistently offer worse prices than originally requested
- Reject rate varies by instrument -- thin markets show dramatically higher rates
- Sudden spikes in rejection for no apparent market reason