SVS Securities - shut down?

Thrugelmir

manorhouse said:

Hi Thugelmir.
This is the message i got this morning ( VAST) for you further info.
I hold so i could sell of course. ( with this one sometimes you can buy ( if someone else sells i guess ) ( seems here they have an overall position ))
But with others i hold ( UJO & ALBA ) you get a message they have taken off platform altogether , but you can hold and sell. 
"Unfortunately this product is not available for trading. This could be due to regulatory reasons, your current profile or an internal decision."
Hopefully masonic can explain there reason ?
I find it annoying as i am taking the risk not them ??

All 3 are illiquid thinly traded stocks with low market capitlisations. Not shares that Deigro will make any money from by trading for you. As they've grown in customer base size, they can afford to be more selective. 

manorhouse

Thanks for you comments so you both think Deigro would rather you didn't have lots of AIM.
The make money remark has nothing to do with there trading commission i take it.
They could of just not included any AIM shares, it is only a small potion of AIM i have trouble with i had thought it was due to risk level of those shares .
Would UJO , ALBA ,and SRES have a higher risk level then VAST ( which as i say they do allow when space )
They would not let me buy SAR Friday even though i traded this  with them a couple of years back. 

johnburman

Can you help me - how does the broker make money from differing stocks i.e. other than commisisons (and perhaps stock lending) why should a broker care what stocks you buy? 

adeel26

Is any body using X-O here. I just opened an account with them. How long does it take to transfer the money using in account transfer option?

masonic

johnburman said:

Can you help me - how does the broker make money from differing stocks i.e. other than commisisons (and perhaps stock lending) why should a broker care what stocks you buy? 

In this situation, the broker makes money in the same way that a market maker would make money: they benefit from spread by creating a substitute market and matching orders themselves, away from the genuine market. Hence they are able to profit from the spread themselves. They can't make this money when the stock being traded is illiquid and there is nobody on their substitute market wanting to sell when others wish to buy, so they would end up losing money on such trades because they have to route them out to the genuine market.

There is an inherent conflict of interests in such situations because order execution is not immediate and it is in the broker's interest to give the worst price available around the time the order was placed, while the customer's interest is to get the best price available.

johnburman

But masonic, what about the "best execution" rules in the T&Cs?  You get the "best " price on the LSE (I only buy LSE stock).  That transaction - all tranactons - is listed on the LSE site.
So the BROKER can not make money ont he "spread"....or have I misunderstood 

Alexland

adeel26 said:

Is any body using X-O here. I just opened an account with them. How long does it take to transfer the money using in account transfer option?

A cash only transfer would usually take a couple of weeks from when they recieve your form and they say stock should be 28 days but it really depends on the complexity and speed of everyone involved and some are going slower due to the virus.

masonic

johnburman said:

But masonic, what about the "best execution" rules in the T&Cs?  You get the "best " price on the LSE (I only buy LSE stock).  That transaction - all tranactons - is listed on the LSE site.
So the BROKER can not make money ont he "spread"....or have I misunderstood 

I suggest you review the Order Execution Policy in more detail, in particular sections 3.4-3.6. In particular, note the part underlined at the end of section 3.4: "You  agree  and  expressly  instruct  that  DEGIRO  may  make  use  of  all  the  places  of  execution mentioned in this document.", that is, the national exchanges, alternative exchanges such as Chi-x, and outside of an exchange.

Thrugelmir

adeel26 said:

Is any body using X-O here. I just opened an account with them. How long does it take to transfer the money using in account transfer option?

Many of their staff are currently homebased. Will take as long it takes given the circumstances. 

johnburman

Fully accepted masonic.  And that may explain how they make money, and answers my question
BUT there should be to no detriment to you.  Why?  See the Best Execution rules below with my emphasis.
So to put bluntly, why should I care where my stock is bought or sold, as long as I get the 'best' price? 

As a PS, I only buy/sell at best XO.  My reading of thie T&C s is that this is not really encouraged/liked by them.  I wonder why?
[e.g. they say Market (At Best) Order You place an Order to execute your transaction at the best possible price. This may be necessary if you want your Order to be executed in any event. However, certainly with less liquid products, you may receive a worse price than what you anticipated. We therefore strongly advise you to use this Order type with care.]

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2. Best execution As an investment firm, DEGIRO has a legal obligation to ensure that Orders are executed on the basis of best execution. For this purpose, DEGIRO makes use of its below described Order Execution Policy or the order execution policy of third party brokers. On the Website DEGIRO shows for which exchanges Orders are sent ‘Direct to market'. Orders in relation to Financial Instruments for which such exchange is the reference exchange, will be send to that exchange. DEGIRO will send such Orders directly, using its own membership of the exchange or the membership of another broker, or send these Orders to another broker with the instruction to execute the Orders on the specified exchange. Orders that are sent 'Direct to market', will be executed by DEGIRO in accordance with the DEGIRO Order Execution Policy. DEGIRO can also send Orders to a third party broker, to be executed under the order execution policy of that third party broker. DEGIRO will in such case require from such third party broker, that the order execution policy of the third party broker, complies with the best execution requirements that apply to DEGIRO. DEGIRO will on a regular basis check the order execution policy of the third party and compliance therewith by the third party broker. DEGIRO will also on a regular basis monitor the quality of execution by the third party broker and disclose the results hereof on the Website. On a yearly basis, DEGIRO will reconsider its policy with regard to the use of third party brokers as here described. The third party brokers will make their own selection of execution venues, based upon their own preferences and selection criteria. DEGIRO will on a regularly basis monitor the execution venues used by the third party brokers. Usually, a third party broker will make use of various places of execution, such as regulated markets, MTFs, OTFs, SIs, market makers, liquidity providers, investment institutions and others. You agree and expressly instruct that the third party brokers may execute orders outside the trading venues regulated market, MTF and OTF. For a short description of the consequences hereof, you are referred to the Order Execution Policy below. Investment Services Information DEGIRO B.V. is registered as an investment firm with the Netherlands Authority for the Financial Markets (AFM). 7/910 DEGIRO will not receive third party payments in any form from the third party brokers that it makes use of. At this moment, DEGIRO uses Morgan Stanley as third party broker as described above. On the Website, DEGIRO shows for which exchanges, Orders are sent to ‘Morgan Stanley SOR'. DEGIRO will send Orders in relation to Financial Instruments for which such exchange is the reference exchange, to Morgan Stanley, to be executed by Morgan Stanley using the order execution policy of Morgan Stanley. DEGIRO has ensured that the order execution policy of Morgan Stanley, enables DEGIRO to comply with the best execution requirements applicableto DEGIRO. DEGIRO will regularly monitor the order execution policy of Morgan Stanley. DEGIRO will on an annual basis, for each class of Financial Instruments for which Orders are executed in this way, investigate the quality of execution obtained from Morgan Stanley. The applicable information will be available on the Website.