Buy-sell spreads on different platforms

incus432

I am curious to know if buy/sell spreads usually vary between different investment platforms.  Is this even allowed? 

As examples the prices on two platforms for 3 ETFs showing now - presumably relating to Xmas eve close -  were

SPDR MSCI WORLD UCITS ETF (SWLD)

Iweb Buy: 3,169.5 p/ Sell: 3,103 p   (2.1%)

AJBell Buy: 3,170.5 / Sell: 3,168.5 p  (0.06%)

Vanguard FTSE 100 UCITS ETF Acc GBP (VUKG)

Iweb    Buy:  4,156 p  / Sell: 4,050 p.  (2.6%)

AJBell  Buy: 4136.5 p / Sell: 4128 p   (0.2%)

iShares Core FTSE 100 ETF GBP Acc (CUKX)

Iweb  Buy: 15,776 p / Sell: 15,764 p (0.08%)

AJBell Buy: 15,850p/ Sell: 15,772p (0.49%)

Anyone know if these are genuine differences or would the real prices you traded at be similar whichever platform you were on?

masonic

Spreads are not reliable when markets are closed (and not much better during market hours). They will vary through the day. Those brokers who offer market orders should be getting the same prices.

wmb194

incus432 said:

I am curious to know if buy/sell spreads usually vary between different investment platforms.  Is this even allowed? 

As examples the prices on two platforms for 3 ETFs showing now - presumably relating to Xmas eve close -  were

SPDR MSCI WORLD UCITS ETF (SWLD)

Iweb Buy: 3,169.5 p/ Sell: 3,103 p   (2.1%)

AJBell Buy: 3,170.5 / Sell: 3,168.5 p  (0.06%)

Vanguard FTSE 100 UCITS ETF Acc GBP (VUKG)

Iweb    Buy:  4,156 p  / Sell: 4,050 p.  (2.6%)

AJBell  Buy: 4136.5 p / Sell: 4128 p   (0.2%)

iShares Core FTSE 100 ETF GBP Acc (CUKX)

Iweb  Buy: 15,776 p / Sell: 15,764 p (0.08%)

AJBell Buy: 15,850p/ Sell: 15,772p (0.49%)

Anyone know if these are genuine differences or would the real prices you traded at be similar whichever platform you were on?

After the close all the data are bad. You need to do this during the trading day. It should all just be what the LSE's reporting anyway. There might be some timing errors to take into account as well e.g., some brokers' indicative pricing is delayed 15 minutes whilst others are live. You should really try to compare live quotes as this is what really matters. You should find that 90%+ of the time you'll receive the same price for the number of shares you've asking for as they mostly all poll the same market makers.

incus432

Thanks, that's reassuring. I need to switch funds to ETFs and wasn't sure if it was better to do before or after platform transfer. So it probably makes no difference apart from the trading fees.

Fidelity on VUKG is a clue too

Sell £40.00

Buy £0.00

Hoenir

Platforms will normally route orders to a network of Retail Service Providers (RSPs), who will have the opportunity to quote an execution price. At any given moment you'll be offered the best prices in the market , or potentially none at all. On occcasions the execution houses may have good reason not to trade themselves. 

aroominyork

masonic said:

Spreads are not reliable when markets are closed (and not much better during market hours). They will vary through the day. Those brokers who offer market orders should be getting the same prices.

When they vary during the day, is there a typical pattern of whether the bid/buy price is inflated or the offer/sell price is depressed?

incus432

aroominyork said:

When they vary during the day, is there a typical pattern of whether the bid/buy price is inflated or the offer/sell price is depressed?

I'd guess if the price is rising fast the former and if falling fast the latter?

masonic

aroominyork said:

masonic said:

Spreads are not reliable when markets are closed (and not much better during market hours). They will vary through the day. Those brokers who offer market orders should be getting the same prices.

When they vary during the day, is there a typical pattern of whether the bid/buy price is inflated or the offer/sell price is depressed?

Generally liquidity is lower in the first hour or two of trading.

shortseller09

Always use a limit price