Hi, I was wondering is there any specific reason to why the minimum order size is at £2? I personally would like it to be around £1 for a few reasons:
Smaller Investment
Dividend Reinvestment
Easier rebalancing
I assume different people will want the minimum order size to be at different levels for their needs, but I think lowering the minimum order sizer from £2 to £1 will be a nice change and it helps the smaller portfolio use their spare money more. Thank you.
I’m sure someone can come in with a more detailed explanation but for a quick answer:
The minimum order used to be £1 before US fractionals were introduced earlier this year. Then the minimum was bumped to £2. I think think the explanation given then was it relates to an actual minimum order needing to be £1 in order to execute, so the minimum order is set to £2 in order to eliminate any risk of volatile FX fluctuations suddenly dropping the order value to under £1 during execution.
e.g. an order sent at the value of £2 might actually be executed at the price of ~£1.98 during volatile FX fluctuations, this avoids the instance where a £1 order would be executed at ~£0.99 - below the minimum order value.
I was thinking this would be a bulk order (or similar) for all clients and so would avoid that issue. This would be more efficient than individual trades
It may be that it was required to fix something else and FT don’t really want users adding additional small transactions on their servers. They already struggle a bit with dividend payments!