How do Freetrade’s orders ‘execute’?


#1

#2

Thanks for explaining how this works. Couple of questions:

  1. From an order execution perspective, what are the differences between instant trades and basic 4pm trades? Specifically, would there be a small/theoretical advantage of superior execution with the grouped, larger order?
  2. Re. statement below, can you elaborate on the circumstances under which orders are rejected, especially for US stocks where liquidity from LSE market makers are presumably lower than exchanges in the US?

Sometimes trades can get rejected because the price quotes we get back from the market makers aren’t good enough based on the observable prices against big orders on the LSE order book.


(Giridhar Tammana) #3

I have one question,
Does Freetrade get paid for orders by market makers?


(Alex Sherwood) #4

No we don’t :innocent:


(Giridhar Tammana) #5

I wanted to clarify because many US brokers do not open accounts for UK residents because of stricter regulations in UK (I have been told) around Payment for Order Flow (PFOF).

Sometimes it works against the end consumer though.


(Emma) #6

beautiful indigo ‘Buy’ button

Purple surely? Or maybe violet? :thinking:


#7

Time to get the Dulux swatch out


(Emma) #8

Pantone number or it’s not true


(R3) #9

May I suggest a classic tool?

It’s old school I know