Bid/Offer Spreads worse on Trading 212

Hi All

I am puzzled about why the bid and offer prices on trading 212 are worse than for example interative investor. For example when i try and buy Smithson Investment trust on trading 212 i dont get a live price before i put the order through and it executes at £14.37. With an order at the same time on Interactive Investor the price gets executed at £14.31. Similarly has a difference between the platforms. I though trading 212 uses a big broker to execute the trades. Does trading 212 make money from wider bid offer spreads or is it becuase my purchase amounts are much smaller on the platform. Been with Trading 212 for a number of years but this part
concerns me.

Also why doesnt trading 212 give a pre execution price like other platforms. For example on II you will fill the details of the trade and then when you reveiw order you often get a different live price to which you can confirm. With II you often get a better price than the original quoted price . Very rarely get this with Trading 212

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Are you a day trader or long term investor?

im a long term investor

This is illegal - so let’s rule that out.

Ask T212 for a snapshot of the book at time of order - if you placed them both at the exact same time as you report, you should be able to spot them both in the readout.

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i guess all im trying to establish does a bigger platform like interactive investor have access to market makers that are able to get better spreads. The problem with trading 212 you dont even get a confirmed price before you press execute. You do with most other big platforms

The likelihood of this is no, but a best execution report would go someway to confirming this for you.

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Have you compared your trade on 212, to the trades recorded on the stock exchange at that time?

There was a short spike at opening - you might want to consider the market liquidity/timing of when you place trades to confirm the best time to trade if you are concerned about spread. The spread will widen/narrow throughout the day depending on liquidity.

As above/others have said - it is illegal to take a cut of the market spread. What II and others do, in return for charging higher fees, is put your offer out to tender, both on and off exchange. They then present you with the best offer at the time in which you can accept or not. 212 operate on exchange only, so your 1437p looks reasonable if you traded near the start of today.

Have you considered using a limit order. If your happy with the current market price as an entry point, it could stop your trade going into a queue and executing at a higher price if the market spikes and your trade gets to top of the queue?

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Seems to me your questions have been answered and yes it would be illegal in the UK, am not sure what takes place in the US.

Am also a long term investors and tbh am more concerned about what comes out of the FOMC and market reactions than anything else.

FTSE is a bit jittery today, not sure if any news or leaks on the potential hikes is out already

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Buffett and Munger would tell you this doesn’t matter really. I also remember DG once saying he’s never once considered who’s running or what the FED are doing prior to recommending a company.

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US brokers are obligated to deliver the national best available price as well.

Fees on spread is common for CFDs, but when it comes to share dealing it’s pretty much a big no-no everywhere.

I’ve had similar concerns recently when comparing to Hargreaves. Today i also checked the history of purchases for some of my FTSE 100 stock puchases. I was shocked to see that my buy price was 2-4% above the range for that stock on that day ie the buy price never went near to the price i paid. I’m talking large cap like BATS and others, not small caps. I dont know if setting a limit order will help ie setting the maximum price that you will pay that day. Regretting that i paid into T212 as an ISA again this year. I’m going to move to a low cost broker as the higher spread/prices will cost me far more in the long run.

Can you share details - screen print maybe without your details. Would be good for all to see what’s happening. You should be able to challenge it if you can’t find the price on exchange. Trade request/execution time and price all useful to look at and help if the case we could help point out how to raise a claim.

Yup, brokers are quite heavily regulated. You are able to request proof of best execution, and if it shows discrepancies with the recorded trades on the exchange, you should be able to claim against that.

Most T212 marker orders are OTC, but I don’t think this allows them to give a worse price. Don’t quote me on that though!

They never come back and post proof.

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How do I check what prices were executed on the day. This is just one example, I have lots more. My tradingview charts show that price didn’t go above about 2520 that day

On that day, charts show that price didn’t go above 644p

Charts show price didn’t go above about 91p on that day.

Taking this one as the most recent. The charts on 212 if that’s what we are talking about are (or were) an indicative Bloomberg feed. You need to check what traded on the exchange for a true comparison.

Some sites quote last traded, others bid, offer and so on. There is generally no standard, although I would personally prefer to see the bid/ask and or spread graphed over time.

I would normally check on the stock exchange website, but using Yahoo as it shows the high/low of the days:

So it traded between 665-670 so your price looks reasonable without looking further into prices traded around the time your trade executed.

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Mine shows 2617.5 high between 11:00 and 12:00.

Would it not be a case of only showing bid price in your chart, while you would of course get the ask when buying? As it has been mentioned before, there are many different sources of prices, and different providers will always have some slight difference.

As for recorded transactions on the LSE, it is behind a paywall, but one can use Yahoo’s historical data with enough reliability.

BATS here:

TwentyFour:

Once more, if you think you have not got the best deal you could, you can and should request from T212 proof of best execution.

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Looks like it closed at 670p on the day. It opened higher.

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