The Zero order
A Zero Order is always commission-free. This is the most important difference between this order type and Market Orders and Limit Orders. The Zero Order can be used both to buy and sell a European share or an ETF. Here its main characteristics:
Time of execution
One difference between the Market Order and the Zero Order is that the latter isn’t executed directly. We collect all of our users’ Zero Orders for the day and send them to the stock market at the end of the trading day, between 4 and 5 p.m. (CET). We refer to this one hour period as the time window. The deadline to place an order, 4 p.m., is called the “Cut Off Time”.
For the Zero Order, the following rules apply:
- Zero Orders placed before the Cut Off Time can not be cancelled after the time window has opened.
- Zero Orders placed after the Cut Off Time will be rolled over to the time window of the following trading day.
The price of a share can change between the moment you place a Zero Order and the moment of execution at the end of the trading day, so we’ve built in a safety measure.
- For a buy order, the difference in pricing may not be higher than 4 percent.
- For a sell order, the difference in pricing may not be lower than 5 percent.
A Zero Order that can’t be executed due to one of these reasons will be automatically cancelled and you will receive an ‘order cancelled’ message in your inbox. This order will not be saved or rolled over to the next time window.
No guaranteed execution
Whenever a Zero Order can’t be executed for any other reason, you will be notified after the closing of the time window. You will then receive the ‘order cancelled’ notification in your inbox. In this case, the Zero Order will also not be saved or rolled over to the following time window.
Revoking a Zero Order
If you want to revoke your Zero Order, you can only do this during opening hours of the market and before the Cut Off Time.
We don’t charge a commission for Market or Limit Orders when buying and selling American shares, so we don’t offer a Zero Order on American shares. On these shares, we charge an FX markup, since you are buying with euros shares that are priced in dollars. You can read more about that here.