In-house dealing
What is it?
We're one of the few platforms that have our own in-house exchange dealing desk. We’ve been a member of the London Stock Exchange since 2008, meaning we can deal in real time throughout the whole time the markets are open; we aren’t limited to placing bulk trades only once a day.
How does it help
Trading throughout the day helps us to give you more control over exactly when you buy or sell, often generating significant savings for your clients from improvements we secure on bid offer spreads in the market.
How effective is it?
During 2023, our dealing desk processed around 391,000 client orders and delivered c.£714,000 price improvements. That translated to an average 12.28 bps saving per trade over the period. Over the longer term, that could offset a signification portion of the platform charges.
As well as the advantages that come with being able to trade throughout the day, our all-inclusive charging structure means there are no additional costs for direct market trading, which is unique in the UK platform market.
How this could benefit your clients
Let’s look at an example of how our in-house dealing desk can work for the benefit of your clients. For this example, we’ll take a fully invested portfolio of £180,000 and assume a growth rate of 4.5% a year. After 30 years we can expect a final portfolio value of £674,157, net of charges.
Our figures show 63.4% of holdings in an average client portfolio are switched over the course of a year. If we consider the 12.28 bps saving per trade our dealing desk can achieve, this increases the effective growth rate on switched assets to 4.76% and gives a weighted return on the portfolio of 4.66%. Over the same 30-year timeframe results in an estimated final portfolio value of £706,381.
So, what does this mean for your clients in real terms?
In this example, our platform charges over 30 years would total £35,986. The price savings that our dealing desk can achieve in this period, through improved pricing on switched assets, amounts to £32,223. This means for a portfolio invested in exchange traded assets we can offset up to 90% of your clients’ platform charge over 30 years.