Looking forward to seeing the results of your experiment.
I donât believe youâll see a difference, but as I say Iâm keen to see the results.
Thank you for your interest in my endeavour. However because of limited amount of time, I wonât be able to go further after this though; hereâs my experiment:
Full text can be found here:
No broker uses payment for order flow in the UK.
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Interesting article that also include FT. All services (i,e platforms)
not equal, some do it pricier than other. Thank you for reading:)
Full text:
I thought this sounded old. aggregating orders is the primarily the scheduled order option where orders are executed at 10 (for UK stocks, roughly).
The users complaining about not getting the price they expect is primarily down to users not understanding stock trading, not understanding that prices listed are indicative, and not reading the order execution policy.
This is the case for basically all brokers. HL for example if you use regular investing will aggregate orders and execute them all at the same time at whatever is the best price they can get at that particular time.
There are differences, for example, while you should get very similar prices between Freetrade and HL since they use roughly the same execution venues (with a little difference in the balance between them), some other brokers may not have any control about which execution venues are used or how orders are sent since they use a third party for all their stock dealings. Or itâs possible they trade internally. But brokers donât make profit from PFOF for example in the UK, as this is against the regulations.
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My understanding is that this hasnât been accurate for years. Even basic queued orders are no longer aggregated I believe.
Iâm pretty sure queued basic orders are aggregated , though the execution policy should say or not. it makes sense, theyâre all executed at the same time, its cheaper to just run one bulk order
It was definitely the case that aggregation was stopped when migrating to the Invest platform. I donât know if it was built back in since then.
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You all make valid points, Mike, Cam, EdenâŠI agree on most of what you posted.
Itâs just that things tend to cost less (I get better prices on shares) with FT when I trade. I do small unsophisticated trades, so, thatâs my situation, thatâs all
Itâs very possible that some brokers are not able to get as good an execution as Freetrade and some of the other larger brokers. My only view would be that it likely wonât be down to making money off the spread or anything like that. Itâs likely theyâre just unable to get fast enough trades with a good selection of venues
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Limited amount of time? Your experiment would take less than a minute to do?
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Several websites (i use london stock exchange) show all executed trades. Easiest was to check if the execution price you get is close to those executing trades at the same time is to look at your trade in the list and see what others got. I donât expect much of a difference (if any) on highly liquid stocks. For illiquid stocks, prices can swing a lot between trades even taking account of the spread.
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Thank you for being very keen on following my endeavour.
Just another recommendation to read/listen to Flashboys by Michael Lewis. Itâs a story through high-frequency trading, dark pools, and all kinds of financial chicanery that after reading youâll realise that.
A. There isnât such a thing as a âshare priceâ
B. Trades happen in fractions of a second either side of your trade (or trades large enough to merit a swing in price)
C. The system is likely set up for you not to win if youâre thinking of investing in days of weeks but fine for you to invest over many months and years.
Pop your tin foil hat to one side and listen to @Eden @Cameron they know what theyâre talking about!
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There are some good conversations on the forum but for the most part it is a bit of a mess of emoticons and people showing off their green portfolios. Clearly, Im a bit jealous. But, I think on the whole freetrade community involves a bit more thinking and 212 a bit more shouting
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My high street bank is competitor to FT in my book
Thank you for replying,I was being a little facetious. I love the people who come on to the Freetrade community forum and go on about other platforms and how wonderful they are compared to Freetrade.
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2-3 years ago but not today. Freetrade is targetting higher net worth individuals, those who arenât looking for the âcheapestâ platform around.
FCA introducing Customer Duty should be the first nail in the coffin for T212, I expect they wonât stay in the UK for long.
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