Understanding OTC for ETF purchases

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1

Hi,

This is my first post in the forum and looking forward to joining the community.

I’ve been using T212 for the last few days to assess whether I want to transfer my FT ISA before the new tax year. So far I’ve been really impressed.

One thing I have noticed when buying my usual ETF VWRP is that T212 shows the purchase as OTC rather than directly with the exchange like FT. Is there any additional risks or considerations I need to be aware of with this approach, as I’m not that familiar with OTC despite reading up on it. As I understand it you are effectively buying / selling from other users on the platform if that is the best price available.

Thanks in advance.

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This isn’t always something bought on the pink slip market - OTC can mean an internalised trade, put simply you bought some VWRP from another 212 user who was selling.

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So it’s just another method of purchasing with no additional risks or implications? Thanks

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When you see OTC for an ETF like VWRP on T212, it basically means you’re trading with other users, not directly on the exchange. It’s not a huge deal, but the main thing to watch is that liquidity can sometimes be a bit lower, so the price might be slightly different from what you’d get on an exchange. It’s pretty safe overall, but just keep an eye on spreads and market movement.

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