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?
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 This is the biggest pushback for me for t212