Order Execution Policy

1               Information

1.1            Introduction

Monecor (London) Limited, trading as ETX Capital (“ETX Capital”, “we” or “us”), is authorised and regulated by the Financial Conduct Authority (“FCA”) under Financial Services Register number 124721. We execute Trades with you on a principal to principal basis and deal with you as an arm’s-length counterparty. We execute CFD and other Trades with you with respect to a wide variety of Underlying Markets.


In this Policy:

Bid Offer Spread (also known as Bid-Ask Price) means the difference between the price at which you can sell and the price at which you can buy.

Limit Order means an order to buy or sell a Market when it hits a certain price. This is an instruction to trade at a more favourable price than is currently available.

Market means a unique set of products based on the price movement of an Underlying Market.

Negative Slippage means slippage which leads to an execution price that is worse than the price requested by the client.

Order means an instruction to open or close a Trade in a specific Market.

Positive Slippage means slippage which leads to an execution price that is better than the price requested by the client.

Slippage means that the specific price requested by a client is not available when an order is presented for execution so the order is executed as close as practical to the client’s requested price which may lead to Positive Slippage or Negative Slippage.

Stop Loss Order means an instruction to deal in a particular Market if our price in that Market becomes less favourable to you. These Orders are commonly used to provide some risk protection, but are not guaranteed.

Trade means an Order that is executed.

Trading Agreement means the ETX Capital Customer Terms and Conditions.

Underlying Market means the relevant financial instrument, index, currency pair or other instrument, whose price or value provides the basis for us to establish the price we quote you for a Market.

This Policy forms part of the contractual terms of the Trading Agreement and constitutes a contractually binding agreement.If you require more information or further explanation about any aspect of this Policy, please do not hesitate to contact Customer Service at customer.service@etxcapital.com or telephone +44 (0)20 7392 1494.

2               Scope

This Policy applies to all of ETX Capital’s clients. However, with regard to Professional Clients ETX Capital applies the following four-fold cumulative test, from the starting point of Professional Clients not relying on ETX Capital to achieve best execution, to determine whether we owe best execution duty:


  • Which party initiates the transaction;
  • Market practice and convention to ‘shop around’;
  • Relative levels of price transparency within the relevant market; and
  • Information provided by ETX Capital and any agreement reached.

3               Order Execution

We are the counterparty to all Trades executed. All Trades are on a principal-to-principal basis and we will deal with you as an arm’s-length counterparty. Order execution may vary depending on the platform.Subject to an Underlying Market being closed or suspended, within normal Market hours we make such prices available for Trades within defined Trade size parameters and outside those parameters as we may determine from time to time (where our clients are so permitted with reference to the terms and conditions). 

At our sole discretion we may choose to execute a transaction on our own account in order to hedge any particular or residual Market position accruing as a result of your trading. Even where such a transaction may be related to your particular Trade, at no time will we be acting as your agent or owe you a fiduciary duty in respect of your Trade or our hedge.

In providing you with financial products and services we, as your counterparty, act as a principal only and therefore represent the sole execution venue to which you have access and only at a price set by us. Orders are executed on an ‘over the counter’ (OTC) basis rather than on an exchange or other regulated market.

If you make an Order larger than a size limit specified by us, or in an illiquid Underlying Market, or with a specific request attached, we will proceed to 'work the Order' on a fully disclosed basis. This is where we will make Trades in our own name in the Underlying Market as a hedge against your prospective Trade. Once we have obtained our hedge we may execute your Order as a single Trade or series of Trades. 

4               Execution Factors

4.1            Price

For any given Market we may quote one or two prices: our offer price (the higher one at which you can buy the Market from us) and/or the bid price (the lower price at which you can sell the Market to us).

The calculation of a Market’s bid or offer price pays due consideration to the price of the Underlying Market. Where necessary this may then be adjusted to allow for the effect of interest over the period of the Market contract, to take into account any corporate actions and other relevant factors and to include a commission. Prices on our trading platform take into account data from various sources and not directly from one source; they may not match the prices you see elsewhere.

If you choose to make an Order for immediate execution on a bid or offer price shown on our trading platform, execution will be at the latest price as calculated by our pricing system. In some cases this might be more, or less, advantageous than the price originally shown. In volatile Markets, where such an Order has not been rejected for failing our tolerance checks, the divergence in price might be greater. We will not be liable for any losses or costs which you may incur as a result of not being able to open or close a Trade at a particular on-screen price due to, but not limited to, Negative Slippage, unless as a result of our fraud or wilful default.

We undertake periodic reviews to ensure that the Underlying Market price data we receive represents competitive executable prices.

Some Markets we offer are quoted outside the normal trading hours of the exchange or other regulated market where the Underlying Market is traded. To execute Orders outside such normal trading hours we determine the price at our sole discretion, acting in good faith, and by reference to one or more alternative Underlying Market instruments that are trading, the standing of world market prices at that time and/or to the supply and demand of other clients. At such times our prices may reflect a wider Bid Offer Spread and might be restricted to reduced Trade sizes.

When the Underlying Market is volatile and its price is changing rapidly, we are not able to guarantee that every such price movement will result in a change to the calculated price of the Market. The frequency of updates of our Market price is subject to the technical limitations of computer hardware, software and data and communication links.  If you specify a price for an Order (such as with a Stop Loss Order or a Limit Order), where the Underlying Market is moving so rapidly as to 'gap through' the specified price, we will execute the Order for you at the fairest price as possible.

Once a Stop Loss Order price is reached we will attempt to fill your Order at the next price available within a reasonable time. The level at which we fill your Order may be the same, or worse, than the price you specify.  Your Order is triggered by our price during our trading hours, not the price of the Underlying Market during its normal trading hours.

We do not guarantee that when we open or close a Trade with you the price will be as good as or better than one you might have obtained elsewhere.

4.2            Costs

For most Markets, a commission as well as a Bid Offer Spread is charged. This will only be charged on the execution of an Order which opens a new or closes an open Trade.

Additional charges or spreads may be charged where this is negotiated with you in advance.

4.3            Size of Orders

Execution will not generally be affected by Trade sizes where the Order is within any pre-defined minimum and maximum limits. Such Orders will be executed automatically by our trading platform. Larger maximum size restrictions will generally apply to Orders executed by telephone where we have agreed to provide you with this service.

Where your Order size is greater than our predefined limit, it will become an important factor in the execution of your Order. With the exception of foreign exchange products, if your Order is of a particularly large size we may execute the Order in tranches. Such orders will usually be executed in tranches up to or equal to the normal Market size. In such circumstances, the execution price may vary between tranches. Depending on our arrangement with you those individual tranches may be passed on to you as obtained, or be converted into a single Trade at the aggregate average price.

Where execution of a client Order requires us to work our hedge in tranches in the Underlying Markets, this is done by placing our Orders in the particular execution venue on a first-in-first-filled basis (i.e. in the same sequence we receive your and other client Orders), unless the particular specifics of an Order or the market conditions mean that this is either impractical to do so or risks a potential negative impact.

For foreign exchange products we will generally not work large Orders in tranches and will deal with such Orders on ‘fill or cancel’ basis.

Whilst your Stop Loss Order, Limit Order or opening Order may be of a size that might be executed automatically within normal trading hours, it might exceed the maximum size limit when out of normal trading hours. In such circumstances, execution may be carried out in tranches where the price may vary considerably for each tranche.

4.4            Speed of Execution

Should Market circumstances result in unusually high demand, then automatic Market pricing might be temporarily superseded wholly or in part by manual pricing and execution. During such times this might cause delays in speed of execution which itself may impact on the price at which Orders are executed. We have procedures in place to minimise the risk and impact of such delays.

4.5            Likelihood of Execution

When executing through our trading platform, we provide you with screens showing continuously updating prices for Markets offered and, subject to trading times and trading size limits, you have the ability to trade immediately and with a very high degree of certainty.

In order to increase the likelihood of execution for larger Orders and Orders of clients trading by telephone, we ensure that we have the necessary access to trading venues and third-party market makers likely to have the required liquidity to enable us to hedge prior to executing the Order.

4.6            Nature of the Order

The type of Order, including whether it is a Stop Loss Order, Limit Order or opening Order, can be an important factor in relation to execution where this might determine whether the Order is priced and executed manually rather than automatically.

4.7            Market Circumstances

In certain circumstances, the nature of the Market traded (particularly when involving equities) may become an important determinant in the execution of the Order. Where circumstances relating to an Underlying Market might affect the future price and the value of the Order going forward, we will take reasonable efforts to achieve a fair execution for you.

4.8            Specific Instructions

If you give us specific Order instructions, those instructions will take priority over other determinants as set out in this Policy.

Where execution under your specific instructions results in us having to use a different process than that specified in this Policy, we may have to pass the direct costs incurred on to you in accordance with the terms of your Trading Agreement.

5               Aggregation of Orders

5.1            Client Orders

We may sometimes combine two or more Orders from different clients in order to execute a single transaction. This will be where we believe reasonably that it is in your overall best interest and is unlikely overall to be to your disadvantage.

5.2            Aggregation of Client Orders with our own Orders

Where our risk requirements dictate that we must execute an Order in an Underlying Market related to the Market of a client’s Order and we receive more than one client Order for that Market, then we will execute the Orders on a first-in-time basis, unless the client Orders can be combined to obtain a better execution outcome for our clients.

6               Fiduciary Duty

Although we aim to operate in accordance with this Policy, this Policy does not create any legal obligation or duty, fiduciary or otherwise, over and above our duties to you under the Trading Agreement or any regulatory obligations placed on us by the FCA.

7               Monitoring and Review of this Policy

We will, on a regular basis, monitor our operations in relation to this Policy.  A periodic review will be made of the execution venues and data sources we rely upon to provide pricing information. Where we identify the need to make any material change to either this Policy or to our Order execution arrangements, such changes will be fully disclosed to you.


31 January 2016


81% of retail investor accounts lose money when trading CFDs with ETX. You should consider whether you can afford to take the high risk of losing your money.

81% of retail investor accounts lose money when trading CFDs with ETX. You should consider whether you can afford to take the high risk of losing your money.