Can a broker cancel market orders?

Question

I sold my Tesla shares through the Revolut app. After I confirmed this, the transaction was in a "pending" state for several hours. After a few hours, I received a notification telling me that the transaction had been canceled due to technical issues on their partner’s side related to the execution of transactions. Meanwhile, Tesla shares fell $90 per share. Can they do it? Can I apply for compensation?

xirt · Answer

If an order is pending and in a stuck state, you can call them and ask them to cancel it.  If they can't, and you lose money as a result of their incompetence then there would be a valid claim for damages.
Similarly, if an order should go straight to an exchange but doesn't when it should you could have a similar claim.  However there are valid reasons why an order may not go to an exchange.  Some firms do not execute orders outside of trading hours.  Firms may also reject orders based on various criteria (it is a regulatory requirement).
In the first instance, you can ask them what happened and why it didn't execute.
If discussions with them are not successful, go to their regulator.
While most contracts will try to absolve them of any liability, there are usually limits to limitation of liability.

Can a broker cancel market orders?

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