When you trade with us you are entering into a contract for differences (CFD), which is a bilateral (or “principal to principal”) contract between you and Fortrade and we are therefore your counterparty for each such transaction. We are therefore also the “execution venue” on which you trade and we determine the price of each CFD that we enter into with you.

We use a number of different data sources in order to ascertain a suitable Reference Price. We usually use a Reference Price supplied to us by a third party bank or investment firm that provides reference prices to us (Liquidity Provider). We may simply use a Reference Price supplied by a Liquidity Provider to enter into a CFD with you. We will always hedge our risk of entering into a CFD with you by entering into a back to back bilateral CFD contract between us and our Liquidity Provider.

Where there is an exchange or organized market (Market) on which a relevant Underlying trades(for example where the Underlying is a share or commodity), it may be difficult to establish a Reference Price if Fortrade offers Prices to you outside the trading hours of any such relevant Market, or if the Market is otherwise suspended or not functioning. In such circumstances, Fortrade will offer you a Price which it deems to be fair and reasonable in the circumstances(for example based upon a Reference Price provided by a Liquidity Provider or based upon factors such as movements on another Market indirectly associated to the relevant Underlying(such as futures exchange).

6.EXECUTION COSTS
As mentioned above, our Prices are based on Reference Prices obtained from Liquidity Providers and other independent sources. We will usually add a mark-up or mark-down to the relevant Reference Price when we set our Prices and enter into a CFD transaction with you (known as our “spread”). Occasionally, rather than using a spread, we may charge you commission..

The CFD trading you are entering into is not conducted on an exchange. Fortrade is acting as a counterparty in these transactions and, therefore, acts as the buyer when you sell and the seller when you buy. The prices Fortrade offers might not be the best prices available.