What is retail execution-only?

When researching execution-only trading services, you will come across the terms retail execution-only and institutional execution-only. A retail client is an individual that buys and sells investments, in this instance, without any advice. An institutional client is a corporate customer that invests on behalf of others.

Regulatory protection

Retail execution-only clients have a different level of regulatory protection compared to those that use advisory services. However, it is essential to note that the regulatory differences relate to the choice of investments, not the level and quality of service provided. All execution-only brokers are obliged to deal on a best execution basis. Failure to do so can have repercussions.

GIS UK Ltd retail execution-only trading services are regulated by the FCA and defined as follows:-

• No investment advice is given to the client
• No comment on the degree of appropriateness

Retail execution-only transactions are carried out on the understanding that the client has undertaken the necessary research and understands the specific risks.

Best execution

All execution-only brokers offering trading services are obliged to provide best execution based upon the instructions of, in this instance, a retail execution-only client. This means there is no degree of discretion regarding trading prices. 

As an execution-only broker, we invest heavily in the latest technology, taking in low latency electronic trading platforms. Latency reflects the time taken for trading instructions to be entered, received, and acted upon within a trading platform. As many retail execution-only customers are day-traders or basing their decisions on technical analysis, prompt and accurate trading services are essential.

Range of investments available

As an execution-only broker, GIS UK Ltd is regulated to carry out a range of transactions involving:-

• Global equities
• Fixed income
• Foreign exchanges
• Derivatives

Our dedicated trading desk is open across global trading hours, ready to address any potential trading issues. This may involve an illiquid market or fast-moving prices requiring additional support to achieve best execution terms.

Global markets

Regulated execution-only brokers can carry out transactions on behalf of clients across global markets. GIS UK Ltd also has a fully serviced Hong Kong office with specific expertise in frontier markets such as:-

• Indonesia
• Malaysia
• Thailand
• Vietnam

We also have long-standing experience with the Hong Kong market and, in particular, the Chinese "Connect" system. This system allows Chinese companies to facilitate secondary listings on the Hong Kong stock market.

Settlement and custodial services

There is a general misconception that custodial and settlement services differ for retail execution-only clients and those who take advice. On the contrary, custodial and settlement services are an integral part of investment markets worldwide. They support the integrity of markets, investors' trust, and confidence that transactions will be settled in a timely fashion.

Here at GIS UK Ltd, we can settle transactions on global markets and provide safe custody services with established partners. Additional post-trade services for retail execution-only clients include:-

• Reconciliation
• Custody banking
• Corporate actions 
• Transaction reporting

This ensures that clients can check their positions in real-time, monitor the movement of stock and funds, and the settlement of transactions. It is important that corporate activity is relayed to the underlying client so they can take the appropriate action as soon as possible. On occasion, additional information may also be required for tax purposes.

Competitive edge

GIS UK Ltd continually invests in the latest high-tech low latency trading services. This long-term investment allows us to provide high-quality services at attractive commission rates. While there are numerous additional services behind the scenes, it is the speed, reliability, and accuracy of trading that counts for retail execution-only clients. Our forward-thinking approach allows us to maintain a competitive edge over our competitors.

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