Best Execution Policy
Best Execution Policy
Agea Jinrong DOO (hereinafter referred to as "AGEA") is required to take all reasonable steps to obtain the best possible result (or "best execution") on behalf of its clients either when it executes client orders or when it receives and transmits orders for execution.
The best possible result we are required to provide to our clients is not limited to execution price but also includes cost, speed, likelihood of execution and likelihood of settlement and any other factors deemed relevant.
These rules require firms to put in place an execution policy and to provide appropriate information to its clients on its order execution policy. This document contains a summary of AGEA's Best execution policy.
AGEA provides trading services through several trading platforms listed at http://www.agea.com/index.ncre?page=platform-services page. Full list of instruments, spreads, decimals and other relevant information can be read by clicking on each of the offered trading platforms.
It's solely in the discretion of the Company to decide which types of financial instruments to make available and to publish the prices at which these can be traded and the above list can vary since new financial instruments may be added in the future.
AGEA is always the counterparty (or principal) to every trade, so it doesn't act on behalf of its clients but acts as the relevant execution venue for clients' orders, which will be executed on an OTC basis rather than on a regulated market or multilateral trading facility (MTF).
The client has the option to place the following type of orders for execution:
Market Order: is an order instantly executed against a price that AGEA has provided. The client may attach to the market order a stop loss and / or exit target (take profit) levels. Stop loss is an order to limit client's loss, whereas exit target (take profit) is an order to target client's profit. For example, if the current market price of a financial instrument is 129.34 / 129.38, this means that AGEA is willing to buy the instrument from the client at 129.34 and / or sell it to the client at 129.38.
Pending Order: is an order to be executed at a later time at the price that the client specifies. When the price provided by AGEA reaches the price specified by the client, the order will be executed at that price.
The following types of pending orders are available:
Stop Order: Initiating a trade with a stop order means that the client will only open a position if the market moves in the direction he or she is anticipating. For example, if an instrument is trading at 129.34 / 129.38 and the client believes it will move higher, client could place a stop order to buy at 129.48. This means that the order will only be executed if ask price in the market moves up to 129.48. The advantage is that if the client is wrong and the market moves straight down, client will not have bought (because 129.48 will never have been reached). The disadvantage is that 129.48 is clearly a less attractive rate at which to buy than 129.38. Opening a position with a stop order is usually appropriate if the client wishes to trade only with strong market momentum in a particular direction.
Limit Order: A limit order is an order to buy below the current price, or sell above the current price. For example, if an instrument is trading at 129.34 / 129.38 and the client believes the market will rise, he or she could place a limit order to buy at 129.28. If executed, this will give the client a long position at 129.28, which is 10 points better than if he had just used a market order. The disadvantage of the limit order is that if the instrument moves straight up from 129.34 / 129.38 limit at 129.28 will never be filled and the client will miss out on the profit opportunity even though his or her view on the direction was correct. Opening a position with a limit order is usually appropriate if the client believes that the market will remain in a range before moving in his anticipated direction, allowing the order to be filled first.
The client may attach to any pending order a stop loss and / or exit target (take profit) level.
The client may modify an order before it is executed. The client has no right to change or remove stop loss, take profit and pending orders if the price has reached the level of the order execution.
Costs, Fees and Other Relevant Factors
AGEA charges spreads on all trading platforms offered. Commissions are charged on some account types on some of the trading platforms offered. Spreads between bid and offer (ask) prices are variable: they depend on current market conditions and can change at any time.
Price spreads often unexpectedly change and greatly increase during weekends, in after-hours trading, in case of market-related announcements or market turmoil.
The client can always read about and monitor spreads and commissions by going to http://www.agea.com/index.ncre?page=platform-services page and then by clicking on particular trading platform he or she is interested in.
Under certain market conditions, especially during, but not limited to, market-related announcements, weekends, after-hours trading, market turmoil, low liquidity and fast moving market, the price at which orders are executed may be different from the one specified by the client and there can be delays.
For example, when markets are volatile (e.g. week openings, news announcements, significant events) instrument prices can move 50 points or more in just one single jump, which can greatly affect execution of the orders. For example, if a price jumps from 200.10 to 200.50 (in just one 40 points move) and the client short position's stop-loss was at 200.20, his or her position would be closed at the current market price of 200.50, which is 30 points worse than the client's stop-loss level.
On the other hand, if client's long position's exit target was at 200.20, his or her position would again be closed at the current market price of 200.50, which is 30 points better than the client's exit target level.
AGEA is committed to provide the best possible result for its clients in these cases and takes all the reasonable steps to minimize the delays that may occur.
AGEA has Zero-Interest policy on all positions opened on the web-based and Streamster trading platforms, meaning no overnight interest is currently charged or paid. For that reason there are no conflicts between AGEA's service on our platforms (except MT4) and Islamic Riba prohibition. Overnight Interest as a cost of carry associated with holding a position for more than one day is charged on other platforms offered by AGEA.
For more details, please check the Islamic Trading policy page on our web site.
Monitoring and Review of Our Best Execution Policy
AGEA will monitor the effectiveness of this policy on a regular basis and, where appropriate, AGEA reserves the right to correct any deficiencies. Clients will be always able to find the updated version of the Best Execution policy on our web site and will be notified by AGEA if changes and amendments are to affect them.