Order Execution Policy
Gain Capital – FOREX.com is committed to treating you fairly when we execute orders on your behalf.
We will always deal with you as principal when executing transactions for you, unless you have given us a specific instruction to do otherwise.
This document provides a summary of our Order Execution Policy, and forms part of our terms of business. It is effective from 25 June 2012. By agreeing to the terms of our Customer Agreement, you are also agreeing to the terms of our Order Execution Policy, as summarised in this document.
How do we deliver best execution?
When executing transactions on your behalf we will take all reasonable steps to obtain the best possible result for you by executing those transactions according to our Order Execution Policy, and subject to any specific instructions received by you. Our policy takes into account factors such as the nature of your orders, the priorities you have identified to us in relation to these orders, and the practices relating to the market in question, with the aim of producing a result which provides the best balance across a range of sometimes conflicting factors.
Our Order Execution Policy does not however guarantee that execution at our quoted prices (after deducting our charges which may be included in the quoted price) will always be execution at a price which is as good as, or better than, one which might have been available elsewhere.
What we consider in determining whether we obtain best execution for you
We deal with you as principal on our own account and not as agent on your behalf, and we therefore act as the sole execution venue for the execution of your orders.
We take into account a number of factors when considering how to give you best execution. We have rated price as the most important, but we also consider factors such as size, liquidity of the underlying market, speed and likelihood of execution.
The main way in which we will ensure that you obtain best execution is by ensuring that in our calculation of our CFD and forex bid/offer prices we use the market price for the underlying reference product to which your transaction relates. We have access to a number of different data sources in order to generate our prices.
Our bid/offer prices will generally not be the same as the cash price for the underlying. In relation to some financial instruments, at the time at which you give us an order there may be no functioning or no open market or exchange on which the reference product is traded. In such cases we set out to determine a fair underlying price based on a number of factors, for example price movements on associated markets and other market influences, including information about our clients’ own orders.
Our charges may be incorporated as a mark-up or mark-down (the difference between the price at which we take a principal position and the transaction execution price with you). We may alternatively charge a commission or a combination of commission and mark-up or mark-down. Our charges are not taken into account in determining best execution prices.
Where you give us specific instructions those instructions take precedence over other aspects of our policy.
We may combine your orders with those of other clients of ours for execution as a single order. This will be where we reasonably believe that this is in the overall best interests of our clients and is unlikely to work overall to your disadvantage. However, such aggregation may work to your disadvantage in relation to a particular order.
No fiduciary duty
Our best execution commitment does not mean we owe you or assume any fiduciary responsibilities other than those imposed by applicable regulations and agreed in the Customer Agreement.
Monitoring and review
We will monitor the effectiveness of our order execution arrangements and execution policy in order to identify and, where appropriate, correct any deficiencies.
Trading system or Internet Connectivity Execution delays
Delays in execution beyond our control may occur as a result of technical failures or malfunctions in connection with use of the Trading Systems or internet connectivity or processing speed for which we do not accept responsibility.