Spreads on Invest Account

Can someone please tell me if the spreads on Trading 212 are higher than other platforms. for example if i try and buy thr Brunner investment Trust i get a quote price of 910p but when i do the same on Interactive investor it comes up as 901p which is much closer to the sell price. When you make a purchase in Trading 212 is the price where you input the number of shares you want the price you will get? There is no review of price before you execute?

Thanks
raJi

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The price is indicative. The spreads are the exact same across all platforms. T212 use Bloomberg to get their pricing feeds and this isn’t wholly reliable and can sometimes take a while to update particularly on some iliquid stocks. The only way to guarantee a price is to use a limit order. If you place a market order the trade will execute at the best price available at the time of execution.

T212 do not make any commission from the spread on invest/ISA.

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i appreciate that to guarantee a price i would need to have a limit order. What i am asking is when i just buy at market order i cannot see the best price with Trading 212. Whereas with interactive investor they provide me a price very close to the sell price. How can i be sure the price i will be getting with Trading 212 becuase the price when you put in the amount of shares you want gives a much higher buying price.

As I said above, the only way you can guarantee is to use a limit order. You don’t get a live quote when placing a market order.

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Several brokers,especially the large banks have arrangements with market counterparties,the competition between them can mean better prices and in a lot of cases the exact price you will get

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i do with interactive investor. Once i put in how much i want to buy it then goes to a review page and the indicative price represents more closely what i will be paying. Unless i have completely missed something.

Yes some other (usually the larger) brokers may give a quote, T212 do not.

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I just did a test order with smaller amount on both interactive investor and trading 212. On Trading 212 it got filled at 922p and on Interactive investor it got filled at 906p. Thats nearly a 2% difference between the platforms. Something can’t be right here. Why cant trading 212 fill the orders art a competitive price?

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I presume your buys were around 10:36? How many shares did you purchase via T212? Are all the 922p trades yours? You can see that at this time the quoted Ask price was higher than it had been earlier.

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I think you are misunderstanding how the market works slightly!

Even if you submitted 2 market orders for the same ticket through the same broker there is no guarantee that they would be filled for the same price - they would both be filled at the best execution price available which could differ for two orders.

For example, you placed two orders each of 1 share using the same broker one after the other. The first to market gets filled at say £1, the second order is an entirely separate transaction and no one may be willing to sell at £1 any more so it might now be £1.01.

That is a very simple example and the likelihood is that stocks will have a much higher liquidity which would make the scenario less likely but equally depending on the stocks the price might be much more volatile so again you could have a difference in fill price between the two orders.

As others have said if you want to lock in a particular price you need to use limit orders. It makes little difference to t212 what price you pay as they just fill at the best price they can (they don’t benefit from a spread).

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mine is the one for 5 shares at 10:36. Is the problem that Trading 212 does not give a live price becuase when i sent the order the current price was 9.10. I executed the order at the same time on II platform and i got a much lower ask price. It took forever to get the order executed on T212. The live price i got on II was the price that was executed for my trade on their platform. Is it becuase this trust is very illiquid or do platforms like II have the edge becuase they have access to different market makers?

It purely depends on how much someone is prepared to sell their shares for. With a market order you buy at the cheapest available. But it also depends on volume also.

It also depends on whether an order is routed directly to the exchange or a market maker. Some brokers also trade on a secondary market.

The only way you can be sure is to use a limit order and route directly to the market.

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