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Strategies & Market Trends : Daytrading Psychology
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To: rocklobster who wrote (78)12/3/2000 3:59:09 PM
From: dli   of 104
 
It seems to me that your problem is that you do not seem to have adequate knowledge of how to make use of the various order routes that a direct access broker provides you with. You probably should spend some time reading up on the features the various ECNs provide and what route is best to take in specific market situations.

As for payment for order flow, I do not see how IB could have such an arrangement for stocks (options is a different story). BE will do one of three things with your order: Send it to an ECN for execution, SOES it to an MM, or send it to SuperDOT in case of a listed stock when there's no better price available on an ECN. None of those options fit into a payment for order flow arrangement. IB used to have autoex agreements with MASH and SHWD but those only lasted for about two weeks each after which those MMs realized that they were racking up losses on the arrangements and decided to terminate them.

The main problem with Best Execution is that it relies on IB's quote feeds for its order routing decisions. And since quality of those feeds during regular market hours is absolutely horrendous your orders are likely being rerouted a number of times before finally hitting a price that is "real".

BTW when using market orders on NASDAQ stocks you are asking to be robbed no matter which execution system you use.

Dave
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