Rejected orders, rare but irritating parts of using a brokerage platform. Read on to see some of the underlying causes causing this, and how Freetrade is working to reduce them.
We know a handful of our users have experienced trades on the app rejected by the market. While it’s relatively unusual, it’s frustrating when it does happen. No-one likes being rejected. 😢
So we wanted to share a bit more on the underlying causes, and how we’re working to reduce them.
There are two main reasons for rejected trades:
For the first reason we’re working on our messaging. It looks like most people only experience this once and then slightly increase the amount on future orders to build in a buffer. 🛡
The second is a bit more complex, so I’ll talk a bit more about how we’re improving it. 🙏
While rare, we still want to reduce the number of rejected trades as much as possible.
Traditional brokers avoid this problem by operating a manual trading desk. If trades are rejected by the automated system, a broker picks up the phone and barters for a replacement.
As a tech company, our approach to this problem is different! 😁 We’re working on a couple of routes.
In the short term, we’re adding more RSP counterparties. More counterparties means more buyers and sellers, so we’re more likely to see quotes for the other side of your trades.
In the longer term, we’ll add even more trading venues, so if the RSP network isn’t quoting we can reroute to one that is. 💪
We also expect fewer Basic orders to fail as our trading volumes increase. Larger orders are more attractive to the RSPs and more likely to get them to quote.
If you do have an order rejected, you can buzz us on live chat to get the detail. It’s extremely likely to be one of the two possibilities above. 🔎
If it was a Basic order for just one share, it’s even more probable it was the ‘price move’ scenario.
We’re working hard on making rejected orders even rarer. We hope knowing the context behind it helps! And remember: if one of your orders is rejected, you can always try again the next day. ✅
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