Trading.com – what we know and have as facts about it; This is a trade name of Trading Point of Financial Instruments UK Limited, which is authorized and regulated by the Financial Conduct Authority (FCA) under reference number 705428. This is the sister company, which operates under the trade name XM.com. This license allows it to conduct various financial services, including receiving, transmitting, and executing customer orders.
We have found in the Order Execution Policy text that the company’s single execution venue is provided by its sister company Trading Point of Financial Instruments Ltd (TPFI Ltd). A potential conflict of interest arises because Trading.com executes all client’s orders with its sister company Trading Point of Financial Instruments Ltd. It is written that in this execution model, there is a direct correlation between the profit/loss made by the client and profit/loss made by TPFI Ltd. TPFI runs a marker making desk and it hedges its exposures on a net book basis and is the sole execution venue for the company. The company claims it has established procedures and controls to monitor the quality of execution offered by TPFI Ltd. However, the conflict of interest exists.
So far, we have not received any complaints from customers of Trading.com. If you have any criticism to share with us or feel annoyed by Trading.com, please fill in the form below, detailing your case. Once we have made your case public, we may attempt to mediate between you and Trading.com if you wish.