Through DEGIRO you can trade in LSE AIM stocks, however there are a few points to consider before starting to trade AIM stocks.
The Alternative Investment Market, or AIM, was launched with the purpose of allowing smaller companies to gain a listing on a stock exchange without the entry and regulatory requirements of the main LSE. The FTSE AIM works differently than the main market.
The London Stock Exchange offers three trading services for equity securities.
The SETS is the primary order book for large cap LSE stocks and some of the more liquid AIM stocks. It features a full electronic order book with executable quotes and centralised clearing.
The SETSqx trading service is more commonly used for less liquid or smaller companies. SETqx listed products do not offer continuous trading as SETS products but rather trade via four intra-day electronic order book auctions scheduled at 9am, 11am, 2pm, and 4:35pm. Stocks can also trade OTC (over-the-counter) by individual market makers outside of these auction times.
You cannot participate in the SETSqx auctions via our platform; your orders will always be sent to the market makers instead of the exchange since liquidity is generally very low during these auctions. The price information shown in your Trading Platform does, however, reflect the prices from the auction. You will thus see the prices from the auction, but you will not trade directly against these prices. The prices in your Trading Platform thus serve as an indicator of the current market value of the product, but are no guarantee that you will receive execution against these prices.
The SEAQ (Stock Exchange Automated Quotation system) is a non-electronic executable quote service where market makers provide AIM stock quotes. The system has no publicly available order book and trades conducted in a quote driven market traded OTC.
DEGIRO recommends that potential investors inform themselves of the specifics of each trading service before trading on the AIM exchange, as liquidity can be limited, information may not be publicly available, and trades may be conducted off book and outside of auction times, despite other open orders in the market at the time. You can find on which trading service each security trades on the London Stock Exchange website.
For more information, DEGIRO recommends reading the LSE's document on trading services.
The information presented above is intended to provide basic information in relation to the FTSE AIM market and should not be considered to be trading advice. DEGIRO accept no responsibility in any inaccuracies or incorrect information. All trading carries risks and investors should remain knowledgeable about the products and markets they are trading in. Further information can be obtained by referring to the London Stock Exchange website.