To keep costs low for our clients, we group all orders into one buy and one sell trade per ETF each day.
- For non-SIPP accounts, we place one buy and one sell order per ETF.
- For SIPP accounts, we place a separate buy and sell order per ETF, grouped only with other SIPP client orders.
We then use what’s known as the Retail Service Provider (RSP) model to execute these trades.
What is the RSP model?
The RSP model is a system used by the London Stock Exchange (LSE) to help retail investors get fair prices when trading.
Here’s how it works:
- We send our grouped order to a network of brokers (RSPs) who quote the best price they can offer.
- We compare those quotes and select the best one available.
- The chosen broker then places the trade using the LSE’s RSP platform, which matches orders based on price, size, and timing.
This process helps make sure that trades are completed efficiently and at the best price available, based on current market conditions.
Although trades made through the RSP model don’t appear as public trades on the LSE, they are still considered to be executed on the London Stock Exchange.
The RSP model offers good liquidity (meaning it's easier to buy or sell ETFs) and helps ensure that your order gets the best price at the time it’s placed.