Additional Info on Rejected Orders


(Chris) #1

Last night my order was rejected. I don’t know why though. It’s possible I created a confusion by withdrawing all my money and then topping up with enough to cover the cost of this purchase.

However, I just don’t know why it was rejected, so I 'd like to see that in the app :slight_smile:


Buy Rejected - Add some explanation
Freetrade is Out :fire: Share your first thoughts once you get access!
#2

I suspect this has come up already, but here goes…

I placed six buy orders yesterday. Five were successful and one was rejected. I have no idea why it was rejected.

In the Activity screen it lists the six orders and the rejected one is clearly marked. I can tap on it for more info, where I see the date, cost, price and stamp duty, but nothing suggesting (to my tiny little mind) what caused the rejection.

Is it possible to give an explanation on this screen? If not, would it be possible to add a link to some related help, perhaps explaining the various reasons a buy order can be rejected?

As a user, I don’t want to leave the app and have to Google for explanations or find my way to help that might be on the Freetrade site. I just want to quickly find out whether I did something wrong that I can do differently in future.


(Alex Sherwood) #3

This has come up before so I’ve moved your post here but thanks for adding the extra details!

As we process basic orders in a batch, unfortunately we don’t receive an explanation when a basic order is rejected. But we are working to add more explanations when an instant order’s rejected. And we hope to be able to improve basic orders later too.


#4

Thank you for moving my post.

If the specific reason an individual order was rejected is obfuscated by the batch processing, can you still safely say it was for one of x reasons?

As a novice I have no idea at all, but the only bit I seem to have an influence over is setting how much I want to spend. Say a share was £3.86, I can stick in £4 and feel that should cover it. Is it that the price might have risen above £4 during the day, so when my order was processed I didn’t have enough funds committed?


(Alex Sherwood) #5

Yes at the moment, if the price rises so that you can no longer afford to buy as many shares are you initially ordered, we’ll simply purchase fewer shares for you. But if you’d only ordered one share, we’d have to reject the order.

Good idea!


#6

Great. I’m testing with small amounts, but even if I was a regular customer I’d be starting in the low-spender bracket, so it will be one share at a time for me at the moment and possibly for many new customers. If you can think of a nice way to display that concisely, maybe only if the order was for one share, that would be sweet.


(Karl) #7

Had this happen on my first order (4 shares of BT), there was an excess amount of money available (£10) and no confusion from withdrawals, more information on why the order was rejected would be great.


#8

At the closing price today, plus stamp duty, £10 wouldn’t have been enough for 4 BT shares.


(Karl) #9

Execution is 4pm right? Here’s what I came up with: £2.4035 x 4 = £9.614 + 1% = £9.710 - which part do you think is wrong?

On an un-related note, Freetrade should look at eliminating stamp duty on amounts below £1,000 in-line with other brokers if thats feasable.


Remove stamp duty for orders under £1,000
#10

That shouldn’t matter because of the way Basic orders are executed. See this from the Order Execution policy:

Dependent on the prevailing market price at the time of execution, the full amount instructed may not be invested. If the instruction exceeds the amount of available cash in your account, we will automatically lower the number of shares purchased accordingly. Any surplus will be returned to your account in the form of cash.


(Alex Sherwood) #11

3 posts were merged into an existing topic: Remove stamp duty for orders under £1,000


(Vladislav Kozub) #12

Does it mean to cover the tax themselves? It probably won’t be feasible because other brokers have more than £5 revenue per transaction (£5 is 0.5% of £1,000, hence the fee would at least cover the stamp duty).


Additional Info on Rejected Orders
Remove stamp duty for orders under £1,000
(Karl) #13

I’m actually not sure how this works on the backend, only that other discount brokers I’ve used have not charged stamp duty on UK shares on £1,000 or less. They do, however, charge £5 and £5.99 per trade respectively.

Here is the relevent tax pages: https://www.gov.uk/tax-buy-shares

Specifically:
https://www.gov.uk/tax-buy-shares/use-a-stock-transfer-form. When a stock transfer form is used “For shares under £1000, you won’t need to pay anything.”

Either my other brokers use a stock transfer form to eliminate this charge, or simply take the hit from the execution fees.


(Emma) #14

Someone’s buying them so someone’s paying the stamp duty. The fee covers it if you’re buying £1000 in stock but why not just pay it yourself and skip the fee? That way you don’t have to pay unnecessary charges on ETFs and purchases under £1000


(Kenny Grant) #15

I was confused by that page too, but that’s not the correct page for electronic trading. This is the page for SDRT (linked from that one):

If you look at HL for example they do charge the stamp duty, it’s just hidden away on the quote screen before you buy. I like that free trade make this really clear. Which trader are you thinking of? Are you very sure they don’t include stamp duty quietly when you buy? I think it would be £5 on £1000.


(Karl) #16

It’s been a long time since I made a trade for below £1,000 due to fees but I went back and looked at my old brokers and your right - the only trades that are stamp duty free are AIM. All FTSE100 trades have a charge for stamp duty.