Pretty self explanatory, the rounding up of half a penny is quite a big deal for stocks that are valued around 1GBP level. Stocks below 1GBP are shown in fractions of a penny.
Same goes for limit orders etc. You could effectively lose out on 2% of gains based on the rounding in buying and selling.
How would you lose out? Freetrade gets the shares at the best available price at the time. This is not necessarily exactly the same price you see on screen. You aren’t buying the shares from Freetrade, they are just the broker.
Not sure what you mean. If a share is at 1.001GBP I can only set a buy/limit order at 1.00 or 1.01 GBP. I either just buy blindly and pay whatever the price is which could easily be £0.99 or £1.02, because there’s simply no reason why it wouldn’t be, or I place a specific price. At the moment that can only be 1.00 or 1.01. Same goes for sell orders.
I blindly sold some Glencore shares recently where the most recent quote (as per Google was £4.70) and got £4.68. So either I can set a specific price or not, but it’s more important towards the 1GBP level because Freetrade only allows fractions of a penny to be defined when a share price is under 1GBP.
Also, is there a specific part of Freetrade’s literature that say’s get they get the best price? There’s no intermediates top-slicing the final price? Other trading platforms are known to do this.
Pretty sure that’s actually Illegal in the UK, not sure which platforms you are talking about. I think the Best execution policy is in the terms and conditions.
I see what you means about Limit orders though, you should be able to put the same amount of decimal places as there are in the price on the exchange
pretty sure it’s illegal
How so?
the same amount of decimal places
Indeed. It’s just a question of control.
It really just seems that the rounding is just some convenient UI thing rather than being useful for trading.
Payment for order flow is not allowed in the UK, when you buy and sell you get free trade use a variety of execution venues to try and get the best price possible. this is fairly comparable with HLs execution venues for example.
Freetrade also isn’t intended as a day trading app, so if your trying to buy and sell to take advantage or small changes in sub penny movements, its 100% the wrong platform for you.
prices are also indicative (everywhere), the price you get will depend on volume, time, venues, etc. various aspects
That said, I do want an option to switch to gbx rather than gbp
Payment for order flow is not allowed in the UK, when you buy and sell you get free trade use a variety of execution venues to try and get the best price possible. this is fairly comparable with HLs execution venues for example.
So does that exclude any intermediates?
Do you mean drivewealth for US shares? I can’t remember what the agreement or rules are in that scenario. Freetrade would not be involved or benefit from pfof, you’d need to ask them if drivewealth use pfof with Freetrade trades