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Non-Tech : Datek Brokerage $9.95 a trade
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To: Peter Stern who wrote (8321)5/1/1998 4:41:00 PM
From: jawd   of 16892
 
If you really want to be helpful, how about publicly answering this message I posted on April 25th? We'd all like to hear YOUR explanation:


Absolutely! I'm convinced that Datek makes money in 90% of our trades in fast moving stocks. I remember placing a market order to buy covering a short on DELL where I'd timed it exactly right, and was expecting to make $1,500 profit - it turned into $500 - where did the other $1000 go? Datek took the opportunity to screw me.

Proof? Read the confirmations you receive in the post. Firstly, no tracking numbers are shown, no times of execution, nothing. This makes it very difficult to correlate your facts if you do a large number of trades and wish to complain later. The confirmation is the bare minimum legally required. Datek is only concerned with doing the right thing legally - not morally.

Secondly; look at the Ex (Execution) and Cap (Capacity) codes on the confirmation against each trade; 90% of my trades are C-3 which means this:

C = "Cross transaction" (as opposed to NASDAQ transaction - see below).
3 = "We acted as principle, either buying from you or selling to you. We may have earned a profit on this transaction."

Only about 5% -10% of trades are coded A-2 which means:
A = NASDAQ
2 = "We acted as agent for your account and risk"

Add to this that Datek IS A "non-registered" MARKET MAKER!! They are listed in the Nasdaq Volume reports as shifting huge volumes of all kinds of stocks under their own MM symbol "DATK". For instance, they ranked 4th below Deutsche Morgan Grenfell, Morgan Stanley and Smith Barney in February 1998 as trading the highest number of Amazon stock. They ranked higher than Alex Brown, Mayer & Schweitzer, Montgomery, INCA and ISLD!!!

They don't take order flow??? How about this from their confirmations:

"The firm may receive remuneration for directing orders to particular broker-dealers or market centers for execution. Such remuneration is considered compensation to the Firm"


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