Are there any plans to allow people to disable OTC when selling?

Right now, if you sell on T212 there is a high chance your transaction goes over the counter (aka you sell to another T212 member instead of on an European exchange).

This is a taxable event in many countries (almost all Europe) while selling on regulated European exchanges isn’t.

Do you have any plans to support this feature as it is incredibly important, especially for people with long-term investing plans?

Hello there, @feedy :wave:

Our execution intermediary may route trades OTC (over-the-counter) if conditions are better compared to trading venues like LSE or NASDAQ. This is done through our smart routing system which scans the market’s micro structure and decides where to route the order, applying the best execution policy. For the time being, there are no planned changes in this aspect.

Thanks, does the same apply to Xerta and other European venues as well for example? Also maybe another dummy question but, when you place a large limit order, is there any chance for part of it to go OTC, while the rest to go through a trading venue, or the full order always falls under the same category when executed?

From my experience most of the trades ( I did not see any which were not OTC), go via OTC. This is really frustrating as the liquidity is very low and orders do not get filled at decided prices :frowning: This is the biggest pushback for me for t212

The choice of exchange directly affects whether I’m liable for a 10% capital gains tax. I’d much prefer to pay a commission when closing a position, rather than face the 10% tax just because the trade wasn’t executed on an EU-regulated exchange.

I guess a workaround might be to transfer to another platform and close my positions there

Hi Trading 212 team,

I would like to ask again whether there are any plans to introduce an option for users to disable OTC/off-exchange execution and route orders only through a regulated exchange, for example Xetra.

This is especially important for investors from countries such as Slovakia, where the tax treatment of securities can depend on whether the security is admitted to trading on a regulated market. When an order for a listed ETF is shown in the app as executed “OTC” or “off-exchange”, it creates uncertainty and concerns from a tax documentation perspective.

I understand that Trading 212 may use OTC execution as part of its best execution policy. However, for some investors, having a clear option to choose exchange-only execution would be very valuable, even if the execution price or speed were not always optimal.

Could you please clarify whether Trading 212 is considering adding such an option in the future?

Thank you.

@With_Feelings I’m afraid there are currently no plans to introduce such a feature. Our smart order routing system is designed to obtain the best possible execution price by accessing liquidity across multiple venues. Because of this, orders cannot be directed to a specific exchange or excluded from OTC execution.