Order execution policy

What is this policy for?

This policy relates to the process of buying and selling investments (executing orders) on your behalf, and to make sure you get the best possible outcome where possible (best execution).

We take into account several factors, which are:

• Price: the price of the investment when the order is executed.
• Cost: this covers both explicit costs, which are things like fees, and implicit costs, which are things like possible market impact (for example, the effect on the market price by making a large order). 
• Speed: the amount of time from submitting your order and completing the order.
• Likelihood of execution and settlement: our ability to place the order and ensure it’s completed.
• Order size: how much the order is for, which can affect things like price and speed.
• The nature of the order, and other information relevant to the order.

How do we execute orders?

We use a trusted partner, WealthKernel (WealthKernel Limited), to handle the investment administration for our customers, which includes the buying and selling of investments. When you make an order to buy or sell investments through the Beach app (for instance adding or withdrawing money), your order is sent to WealthKernel to execute.

How do you get the best outcome?

Beach only offers a limited range of investment options, and these are recognised and authorised investment funds. These are typically bought and sold directly from the investment fund (through WealthKernel), once per day, and therefore trading factors (such as above) have a minimal impact on the trading outcome for you. This also means your investment order may be aggregated (grouped) with other investors, which may on some occasions benefit you, and on some occasions disadvantage you, depending on the order.

WealthKernel is authorised and regulated by the Financial Conduct Authority (FCA), which is a financial services regulator in the UK, and which means WealthKernel must have processes in place to get the best outcome for you when it comes to buying and selling investments on your behalf (executing orders), just as Beach does.

We have reviewed their approach and relevant policies and are happy that they are helping us achieve the best results for our customers. We regularly monitor their performance in relation to executing orders for our customers, and review this policy annually to ensure our customers are getting the best outcomes.

More information

If you would like more information on how we execute orders for you, would like this policy in a PDF format, or if you believe your order wasn’t executed fairly, please get in touch with our team at [email protected].