Best Execution and Order Handling Policy
This policy is provided to you by TD365.com and should be read in conjunction with the Client Terms and Conditions.
The Firm is committed to provide its clients (“you”) the best possible outcome when executing your orders. This policy sets out our approach in ensuring that the best possible outcome is obtained for clients on a consistent basis using our best endeavours.
This policy applies to all clients (regardless of their classification) contracted with the Firm where we act as the counterparty to your trades. As a general approach towards best execution and order handling, we do not usually treat professional client orders differently to retail clients’ orders.
Our platform is fully automated for pricing and order execution, and by placing an order, you are giving our platform an instruction to place that order on your account on the basis of the prevailing prices and/or settlement prices generated by our platform. Please see our Terms and Conditions for further details and refer to our Market Information Sheet published on the website for details on the financial instruments we offer on our platform.
When you enter into a trading contract with us, we act as the principal to your trades and not an agent – this means that we are the sole execution venue and you transact directly with us, and not on any exchange.
When executing orders, we will take all sufficient steps to obtain the best possible result for you taking into account the type of financial instrument the order relates to, and other execution factors.
Following factors are taken into consideration when we execute your orders, ranked in order of importance from highest to lowest:
- Likelihood of execution
- Nature of the order or other considerations
Price and costs
We prioritise price and cost together in order to achieve the best financial result for the client in terms of total consideration for the trade, this includes our own costs, to the extent that they are passed on to the client and try to minimise the costs passed on to the client.
The prices and settlement prices of products are generated electronically by our platform and take into account market data from various sources; in order to enable us to check whether our prices are fair, and we are delivering on our best execution obligation. However, prices and settlement prices may not match prices that you see elsewhere because they include our reasonable margin.
Market fluctuations and technical conditions, in addition to circumstances out of our control, may impact on the prices available on our platforms or your devices. In such instances, the price at which your order was executed may not be triggered and the platform may execute your order at the next available price resulting in either advantageous or disadvantageous outcomes for you.
When trading spread trades with us, all calculations will be undertaken first in the base currency (i.e., the currency in which the relevant product is denominated), before being converted into your account currency. All spread trade contracts will be denominated in the account currency. As with our prices, currency exchange rates are generated electronically by our platforms and may not match other rates you see in the market or other execution venues.
Daily financing fees and dividends
For spread trade markets other than expiring markets, daily financing fees apply (that is included in the price) and in addition to this, our rolling cash indices have dividend adjustments that are charged on weekly basis. These amounts will either be credited or debited to your account depending on the direction of your trade.
Likelihood, speed and size of orders
Our platform executes Orders on an automated basis and does not rely on any manual intervention or dealing. However, should market circumstances result in unusually high volume of trades, the automated market pricing might be temporarily superseded wholly or in part by manual pricing and execution. During such times this might cause delays in speed of execution which itself may impact on the price at which orders are executed. We have procedures in place to minimise the risk and impact of such delays for example, we monitor on regular intervals the percentage of trades requiring manual intervention against automated executions and where we find a difference greater than our best execution standards, we look to resolve the issues through making technical adjustments or system updates.
Orders within our minimum or maximum tolerance are executed electronically without any manual intervention. However, all orders will be executed during the trading hours only. The only circumstances your order or modification (for a pending order) may be rejected is where the nature or size is in breach with our risk management policy.
In order to increase the likelihood of execution for larger orders and or those with specific instructions, we ensure uninterrupted liquidity by execution reporting and spot-checking prices. Where client orders are outside the risk tolerance, we may hedge the residual risk in accordance with our risk management policy.
Monitoring and review
We will regularly monitor and review our policies and procedures and associated arrangements in order to ensure we comply with our regulatory obligations, making appropriate amendments if necessary.
Should you require any further information and/or have any questions about this policy please contact us at email@example.com.
Last updated on 8th February 2021