Order Execution Policy
Following the implementation of the Markets in Financial Instruments Directive (MiFID) and in accordance to the provisions of the Financial Services and Activities and Regulated Markets Law of 2012 (L144(I),2007), IQ Option Europe Ltd (hereinafter called the “Company”) is required to establish and provide its clients and potential clients an Order Execution Policy (hereinafter called the “Policy”) and take all reasonable steps to obtain the best possible result (or “best execution”) on behalf of clients.
1. Scope of Application
The Order Execution Policy of the Company applies to both retail and professional clients, when providing the service of reception, and transmission of clients’ orders in relation to financial instruments.
This Policy ensures compliance with the Company’s obligation to execute orders on terms most favourable to Clients.
2. Best Execution Factors & Criteria
When receiving and transmitting clients’ orders for execution to third parties, the Company takes into account the following “Execution Factors”, in order to obtain the best possible result for its clients:
- Speed and likelihood of execution and settlement
- Size and nature
- Market conditions and variations
- any other consideration relevant to the execution of the order.
Price and costs will ordinarily be of high relative importance in obtaining best possible results.
However, in some circumstances, reference to the “Execution Criteria” may appropriately determine that Execution Factors have greater importance in achieving the best possible result for the client. The Company shall determine the relative importance of the Execution Factors by taking into account the characteristics of the following Execution Criteria:
- The client, including the categorisation of the client as retail or professional
- The client’s order
- The financial instruments that are the subject of that order, and
- The Execution Venues to which that order can be directed.
For retail clients, the best possible result shall be determined in terms of the total consideration, representing the price of the financial instrument and the costs related to execution, which shall include all expenses incurred by the client which are directly related to the execution of the order and any other fees paid to third parties involved in the execution of the order.
3. Execution Venues
“Execution Venues” are the locations (with or without a physical presence) such as regulated markets, multilateral trading facilities, systematic internalisers, market makers, liquidity providers or any other entity that facilitates trading of Financial Instruments. For the purpose of transmitting orders for execution, the Company acts as an agent on behalf of the Client. A list of intermediaries (third party brokers) used by the Company for the execution of client orders in respect to each class of financial instruments can be found below:
- Iqoption Liquidity Ltd
The Company reserves the right to use Execution Venues where deemed appropriate in accordance with the execution policy and may add or remove Execution Venues from the list. Selecting an Execution Venue
Subject to proper consideration of the Execution Criteria and Execution Factors referred to above, where there is more than one competing Execution Venue to execute an order for a financial instrument, the Company shall assess and compare the results for the client that would be achieved by executing the order on each of the Execution Venues.
4. Specific Client Instructions
Where the client gives specific instruction as to the execution of an Order the Company shall execute the Order in accordance with that specific instruction. Where the client’s instruction relates to only part of the Order, the Company will continue to apply its Order Execution Policy to those aspects of the Order not covered by the specific instruction.
5. Reception and Transmission of Orders
Subject to any specific instructions from the Client (as per above paragraph), the Company may transmit an order it receives from the Client to an associated entity, such as a third party broker, for execution. In doing so, the Company shall act in the Client’s best interests and will comply with ‘Best Execution Factors and Criteria’ above.
The Company will review periodically its choice of third party brokers to ensure that the third party broker has execution arrangements and execution policy that enable the Company to comply with all its best execution requirements. A complete list of third party brokers can be provided to the client, upon request.
6. Monitor and Review
The Company will monitor on a regular basis the effectiveness of this Policy and the execution quality of the procedures explained in this Policy, making any changes where appropriate.
In addition, the Company will review this Policy at least once a year and will notify its clients of any material changes (including changes to the selected Execution Venues and third party brokers). Upon request, the Company will demonstrate to its clients that it has executed their orders in accordance with its Order Execution Policy.
7. Client Consent
When establishing a business relation with the client, the Company is required to obtain the client’s prior consent to this policy.
The client shall be deemed to have provided such consent to the Order Execution Policy, as in force from time to time, by accepting the Agreement or by effecting a transaction following the receipt of the notice of any amendment of the Order Execution Policy.