What are pooling and netting, and how do they benefit me as a customer?

In short, they prevent numerous trading transactions on the stock exchange and lead to cost savings, which we pass on in full to our customers.

Before pension funds are invested in securities on the market or currencies are converted, our algorithm calculates all trading orders. If, for example, it is determined that two customers need instrument A and another customer wants to sell the same number of the same instrument, the positions can simply be transferred internally. This process is called pooling, and the internal offsetting is called netting. True Wealth uses this procedure in the area of pension asset management, where customers' assets are held centrally by a pension foundation.

In untied wealth management, on the other hand, each individual customer has their own custody account. Trading orders are pooled, but no netting takes place.

The cost savings achieved through pooling and netting are considerable, as trading orders on the open market incur costs in the form of bid-ask spreads, currency conversions, or statutory stamp duties.