An Execution-only trade involves the execution or implementation of trades without consulting clients on the risk factors, the merits or the applicability of the investment.
Such transactions are processed telephonically and does not involve any form of financial advice or recommendations for the select investment.
This style of trade is only suited to investors who understand the risks associated with these types of transactions and the rewards that it can provide.
The trade execution service is becoming more prominent among investors who are fully aware of the risks these types of investments are associated with. These investment options have shown most effective for retailers who are interested in more cost-effective trading.
Clients must understand that a trade execution will not provide any information concerning financial advice and client direction however, a trade execution service can provide data from market research including trends and analytical research that can help make an individualized decision. Investors accept all the risk with a trade execution service as brokers are not permitted to provide advice concerning those investments.
Trade execution services are the more economical solution for executing a trade. It is less expensive than a full trade owing to the lack of a brokerage service involved in making and guiding the investment decision. It is best for the experienced trader making multiple trades on the market however, it is not without risk.
From stocks and mutual funds to foreign exchange and bonds, all can be traded through execution trade services. It is essential to understand your risk as multiple-trades could lead to multiple-losses.