Basis Capital Markets UK Ltd. is authorised and regulated by the Financial Conduct Authority (FCA) under reference number 810733. Basis is a technology-enabled broker specializing in currencies, commodities, and digital assets, the company says.
Trading assets include over 200 currency pairs, commodities (precious metals, energy products and agricultural products), indices, stocks, and some digital assets.
The company provides its services to professional clients only through API, MetaTrader terminal or Optimax. We must note that there is not much information on the company’s website. We provide as much information as we have found in the legal documents. We assume that all the details will be clarified at a later stage.
The Best Execution Policy document shows that the Basis executes transactions directly with an approved counterparty or on a trading venue, either as participant or through Direct Electronic Access (DEA) via a broker’s membership. Execution may only take place on approved venues or with brokers approved by Basis. It is also written that Basis acts as agent on behalf of the user and as a matched agent executes a corresponding transaction with a third party to achieve the best execution results on user’s behalf. The charges of Basis may be incorporated as a mark-up or mark-down (the difference between the price at which it takes a principal position and the transaction execution price with the user). This means that the company is a pure Straight Through Processing (STP) broker, which benefits only from the offered spread. The Terms of Business document reveals that stop loss orders are not guaranteed and will be executed at the first available market price. It is also noted that fast-moving markets may result in execution of a transaction at a price, which has ceased to be the best market price. This means market orders are subject to slippage. Because Basis deals with professional clients only, the company does not provide negative balance protection. It is written: “The price of the contract you make with us may change quickly and your profits and losses may be many times the amount of your initial investment or deposit. If you do not hold sufficient funds to meet your margin requirements, then we may close your open positions immediately and without notice and you may then have to provide us with further funds to cover any losses.”
In general, this brokerage company is regulated by the FCA and uses the STP model for order execution. It provides services only to professional clients, offering deep liquidity due to the large number of liquidity providers.