Thanks for the response.
1. The highest quality executions available, including price improvement (when available), order protection, order display;
All the firms I consider offer NYSE, SOES, Selectnet, and Island. Several also have Instinet and Bloomberg for a bit higher cost. According to your site, your firm doesn't have a seat on NYSE so I don't see how I could get a better price on any stock with you. Those firms offer a trader direct control over his orders and his portfolio. I wouldn't have to worry about some broker being in hurry to get to another customer, etc.
I would also anticipate the speed difference in getting orders out to be very significant. Speed is a very important issue when trying to get in and out for a short-term trader like myself, and from my quite limited daytrading experience it is crucial for a daytrader (I couldn't hold back today and yesterday - some of the easiest money I ever made, thanks to fear and greed :-))
2. Agency only representation;
3. No market making;
4. No principal transactions;
I don't believe any of the firms I consider make markets or get payment for order flow.
5. Cheaper;
Assuming I make a 150 trades a month, 100 on Nasdaq, 50 on NYSE, each a 1000-shares limit order:
Your price = 100 * (35 + .04 * 1000) + 50 * (35 + .05 * 1000) = $11,750 per month
A.B. Watley price = $300 + 100 * 21.95 + 50 * (21.95 + .01 * 1000) = $4,093 per month
Yearly Difference = 12 * (11,750 - 4,093) = $91,884 savings
If I understand correctly your price may be somewhat lower for a frequent trader, but would it ever be cheaper?
6. Direct access to the trading desk;
Direct access to the market is better than direct access to the trading desk.
7. market guidance, experience and traders to bounce ideas off of.
This may be helpful for some longer-term investors or novices, but I doubt I would benefit from it. Although my market experience is not long, I have been quite successful without much trading guidance. I know what I want to do in the market and I will stick to it.
8. 20 years of market experience.
I understand that A.B. Watley has existed for 40 years. Nobody has much experience in the new trading environment on Nasdaq (especially) or NYSE, though.
Today's open proved that a trader seeing the market should have adjusted their execution approach from one system to another based upon which systems, such as SOES at the open, were backlogged and getting nothing done.
Yes, last two days were challenging to all brokers. From what I heard however, A.B. Watley was working very well (considering SOES and Selectnet problems). I was also able to execute orders with Datek ($9.99 a trade) yesterday and today. Yesterday's access was excellent and today it was considerably slower but it was up when I needed it (switching between servers helps). When I hear about full service brokers and discounters like "we can handle volume other guys can't" Schwab being down or busy when I was getting inside the spread executions I question whether you really get what you pay for. Technology is only going to get better and cheaper and human brokers and traders will only want to make more.
There are a few. The point is, if there we no advantage we would not be as successful as we have been for the past 20 years.
I wouldn't dare to question your success. I understand how institutions or novice traders will always need a firm like yours. For me, however, I don't think there is ever coming back to calling-in my orders. I expect the advantage of electronic trading to only increase over time.
I better get some sleep now, tomorrow I may become a daytrader for a day once again (just to get in the way of pros like irby :))
Thanks for your time. |
