SVS Securities - shut down?

EdGasketTheSecond

Well you seem determined not to take advice, so why ask for it?

Ref. "There are opportunities to make money from the spread"  - No the broker will only get a best price from a market maker, they are very unlikely to add to that spread without having to declare what they are doing; it would be fraud.

johnburman

i ma trying to understand what you said

1  you said "...so you might not be buying at the best price)"
2  "the broker will only get a best price from a market maker, they are very unlikely to add to that spread without having to declare what they are doing.."
I agree with 2; so how could one occur?
For what it is worth i thought that the broke could 'add a bit' to the price, to make up for the lack of commission but this is not what the documents say and as you say it would be contrary to the LSE and FCA rules about "best execution"

So how do Trading 212 make money with me - or do they not.  XO is a loss leader for the more profitable CFD business which they hope to suck me in?

Thrugelmir

Alexland said:

johnburman said:

But no commission does catch my eye.  Am I a fool looking at them?  

There are opportunities to make money from the spread (so you might not be buying at the best price) and from bait-and-switch where once signed up they encourage you into very profitable products such as CFD gambling.

gibson81 said:

Excuse my naivety but does an LSE member firm mean a company listed on the stock market?

No it means a company they can trade on the market:

https://www.lseg.com/areas-expertise/our-markets/markets-membership

Market makers in a stock set the spread i.e. buy/sell prices, not brokers. With online trading investors have a choice whether to accept the price quoted. 

coyrls

johnburman said:

So how do Trading 212 make money with me -

Have you confirmed that Trading 212 make money (i.e.make a profit)?

masonic

johnburman said:

So how do Trading 212 make money with me - or do they not.  XO is a loss leader for the more profitable CFD business which they hope to suck me in?

It's a probable loss leader. They've been giving away free shares as a joining incentive and to people who refer others. The parent company is Bulgarian. I held an account previously for the joining incentive and for me the commission free trades were not individual market orders - they appear to be aggregated and traded in bulk at various points in the day (hence they are able to offer fractional shares). I think the longest I had to wait for a share to be sold was about 20 minutes. This shouldn't really be much of a concern in and of itself if you are a long term investor.

I wouldn't use them for significant sums because I have some concerns about their diligence and regulatory compliance based on what I've seen. If they went pop, the SVS administration could appear as though it were over in a heartbeat by comparison.

manorhouse

Good to see information and debate on the various new brokers out there.
I am so glad  i have acc with most of the older ones familiar on here .
This has made the point about not keeping all your holdings with one provider.
Please keep these ideas and information coming .

In these volatile times it has been good trading with Degirio as its cheap to deal.
But i did not like the fact they called in part of there there loan moneys, at the market bottom three times in one week and wanted  funds next day or they would force sales.
I was lucky to find funds from family to replace .
So it will be good bye to them when things normalise.

I have posted before i think SVS holdings will end up with share centre there is reason as all the other admin cases have gone there .

I am a blue collar type what has been confirmed to me is what rascals these white collar types are, massive share spreads ,forcing sales into falling markets , just two examples.
Hedge funds managers reportedly changing there minds from bull to bear daily to rob the good folk of there hard earned and honest funds built up over the years.
They know nothing more then anyone else , except how to mislead and profit from others.
I hope most of those good folk have not dealt at all during these worrying times.
( For many the block from dealing might of been a blessing unless you planed to go to cash before February  )

johnburman

masonic.  Agree with what you say.  NEVER have >£85K with them but I am interested that you were with them.  you are right about the spreads, but that seems to be a fact of life.  I see that TRADING 212 only lets you invest 95% of your funds.   so they may make a few farthings on the interest earnt on your funds.  Mind you how do you ever invest £20k exactly in an ISA I do not know?   

masonic

manorhouse said:

I have posted before i think SVS holdings will end up with share centre there is reason as all the other admin cases have gone there .

Agree this seems the most likely bet, with them having form for gobbling up insolvency refugees left right and centre, and then the unexplained delay that may have been down to the acquisition by Interactive Investor, who are themselves aggressively building market share. So yes, you'll may well end up with an II account in the end.

masonic

johnburman said:

masonic.  Agree with what you say.  NEVER have >£85K with them but I am interested that you were with them.  you are right about the spreads, but that seems to be a fact of life.  I see that TRADING 212 only lets you invest 95% of your funds.   so they may make a few farthings on the interest earnt on your funds.  Mind you how do you ever invest £20k exactly in an ISA I do not know?   

I don't think that limit applies if you don't indulge in their casino products. I made a small deposit into their general investment account to meet the terms of the joining incentive and all of that money seemed to be available to invest. Investing £20k exactly is easy when you hold some minnows of the market, or have the option to buy fractional shares (as you do with T212).

johnburman

Sorry masonic it does.  See their T&Cs on this:
10.14. You can place an Order, as long as the value of the Order does not exceed 95% of the available funds in your account. Regardless of this, you can still end with a negative balance on your account in cases of sudden market volatility, where the price would drastically change between the time of giving the order and its execution. Should such a change occur and your obligation to settle exceeds your available funds, you will remain liable to settle the Deal in full.
You can "deposit" ££20k, but you can only invest 95% of it.  You have a cash balance for the 5%.  I wonder why?  I suppose to stop day trading when it goes bad...but all very odd