I donāt see anywhere a post saying 212 donāt send the orders to market. I read the above from David as saying that is all they support (as well as internalised IB ā IB) but maybe Iāve misunderstood one of the previous replies - apologies if this is the case.
Hey Eden! just to be clear the stocks we are talking about are not being only traded internally. The problem is actually the opposite - these orders are ONLY going to the exchange auctions where there is low liquidity, whereas other brokers use middle men to make a price and take the risk (market makers) and that is where most of the liquidity comes from in this market.
@ryan9921 @thba9 unless Iāve misread theyāve stated that all these trades today are internal trades only.
that is in reference to all trades made, not T212ās.
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He was referring to off-book on the LSE. If you go to an AIM stockās page on the LSE youāll see lots of these orders. I assume heās saying Trading 212 donāt have access to these orders
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"Internaliseā in this instance means when an MM or broker takes risk onto their own balance sheet (which is what MMs do). I believe that is what he meant - all the trades in the stock today have been with MMs as opposed to the LSE (very few have gone through auction).
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Hi David, thanks for at least owning the weakness and I hope T212 can rectify this as it will be much beneficial for you and us in the long run (liquidity is king in brokerage).
212 donāt use market makers which is one of the reasons these trades can be slower to execute.
Off book in this instance would include trading between 212 users would it not? E.g internalised trades. Rather than direct access which includes auctions. In this case heās saying the order have all been internalised off book orders and not auction orders (dma) or market maker orders (unavailable). The only option left is internal 212 customer trades (or IB if their given access which is unclear)
I think youāre referring to OTC
Yes heās talking about the trades for the stock as a whole have been through MM. Not just in Trading 212 (as they donāt use them)
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I think we are all singing off the same hymn sheet here. In summary:
T212 only offer DMA for AIM SetSqx stocks which means its customers can only access these stocks through auctions (auctions which may not even happen if there is not enough buy/sell demand placed into these auctions which is often the case).
T212 do not offer access to the MMs where a vast majority of the liquidity sits for these stocks.
T212 acknowledges this disbenefit, but it is not an immediate priority.
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Probably, my previous post has caused some confusion. All of the orders today listed on LSE are either executed by MMās or either internalized by Systematic Internalizers.
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Seems this issue is really bad for Urban Logistics REIT too. Days and days with no execution. Am waiting for funds to appear on another provider to see if that will work better for the really low-liquidity stocks.
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OTC (Over the counter) and Off book are the same thing here. Outside or āoffā of the order book.
Basically not done on the exchange marked TOTV (Traded on Trading Venue)
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Iāve bought a bunch of shares in KOD and it has been 90 minutes and they havenāt gone through. Iām new to trading so Iām not sure on the ins and outs of trying to buy UK shares
Itās an LSE AIM instrument, so can take a very long time to execute due to low liquidity.
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Some stocks on AIM take me half a day, thats ānormalā
Liquidity is very low
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Thank you very much for the replies. In that case does buying in smaller amounts increase the chance of a sale going through or is it better to continue trying to buy all of them at once?
Iām not really sure how the actual execution works, but I would just send it as one whole order.
You may also be interested in limit orders to protect yourself from over paying, but I believe the minimum is Ā£100 now so not much you can do if youāre buying less than that amount.
Iād try a few different things, try some limit (rather than market) orders, try some smaller quantities
LSE AIM isnāt fantastic on 212, it is something theyāve said they looking at improving
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