"free" L2 is a competely separate issue from execution performance.
Sure, a higher commission is justified if it gets you better execution performance.
If you want to direct order flow at a micro level, then unfortunately, you probably have no choice but to accept higher commissions and "free" L2 quotes. (Even though they may not be with the data vendor that you'd prefer.) Like it or not, most direct-entry firms do their order entry through the same software that give you the "free" L2 quotes.
I do see that ABWatley now offers some choices. They now have a "free" (darn, there's that word again...) version, with no data fees - but unfortunately with the same commission schedule. They also have WatleyTrader, with $9.95 trades, though I don't know how that differs from WatleyPro. (I presume that you cannot direct order flow.)
I find that the choices of NITE, auto-trade, or SelectNet that I have with Preferred are quite enough, thank you! Frankly, the array of choices available with the direct-entry firms baffles me - dunno how you make those choices quickly enough to make a difference. I know I've had little use for SelectNet, at least in a fast market which is the time you'd most want to use it. I've tried, for example, buying 1 or 2 tiers above the bid in a buying frenzy, but even then, I'm just not fast enough - or else the MMs just don't want to accept my order, and back-off and ramp up their offer. (But then, I don't have the advanced user interface that the direct-entry firms have, so it is a bit awkward.)
BTW, I don't wait minutes for a fill. When NITE is having a "nice" day, a marketable fill can take less than a second. "auto-trade" is usually pretty fast, though it can actually be slower than NITE, as they keep hitting different MMs until they get a fill, 15 seconds at a time. 15 second, as you know, can be a LONG time! This is when NITE can actually be an advantage - as long as they are under their 25,000-share guarantee, they are lightning-fast. (NITE guarantees Preferred automatic fills of marketable orders for the first 25,000 shares of each stock on each day.) |
