Ken,
I really don't understand what you mean by the following statements. I'd like to understand where you are coming from in case I could be getting better fills.
<Executions from broker to broker can vary tremendously. Broker is definitely responsible for getting you the best execution.>
How so? On Nasdaq stocks, most discount brokers simply send your order to a market maker such as NITE, MASH, BRUT, e.g., and the market maker is ultimately responsible for filling your order. Maybe if you have an account with Merrill Lynch, MLCO will work your order. Is this what you mean? Still, if you place a limit order with MLCO, I'm not sure that you can expect any better than your limit price unless a stock moves down quickly if you are buying, or up quickly if you are selling.
In the case of discount brokers, their only responsibility is timely submission to a market maker. In the case of listed securities, the broker either sends the order to a NYSE specialist or to a market maker, depending on whether your broker is a member of the NYSE.
<Some will accept stop loss orders some will not and this is the firms responsibility not a market maker.>
Yes, very true. This should be a consideration if you use stop orders but I find this outside the scope of better executions.
<If your trying to improve the inside spread does your order get reflected.>
The new order handling rules for Nasdaq stocks require market makers to reflect your order if it improves the current bid or ask and it isn't filled within a certain amount of time...I think 60 seconds is the limit. I use Ameritrade and can attest that when I place limit orders between the spread, they are reflected immediately if not filled. Ameritrade sends orders to NITE or BRUT and they always reflect my order within seconds. |
