Watley clears through SouthWest Securities which, as I understand it, provides them with their short inventory. MB Trading and many others also clear through SouthWest and perhaps one of them can give you access to their short list.
I used to use Watley - and they are a terrific firm to deal with in all respects except one. SouthWest adheres strictly to an SEC regulation that does not permit you to margin securities overnight, sell them the next morning, and then use the proceeds to buy the same named issue afterwards on the date of sale. You can use the proceeds to buy a different named security, but then you cannot sell it until the following day. This rule does NOT apply to any free cash balance in your account - only to margin amounts that are borrowed to finance your activity.
I have found an online broker where this rule is interpreted differently. You will have to search to find it yourself since I don't want to publicize their name, get them into trouble, and wind up unable to trade as I want. Datek does the same as the firm I found, but does not permit you to trade from the marketmaker screen on level II. Wish they did, I'd move over to them for their short list. The major drawback of the firm I'm using is that no listed stock is on their short list (Watley, I believe, permits automatic shorting of any listed stock) and their NASDAQ list is very limited.
I have no idea how you trade, and the SouthWest trading restriction which severely hampered me may not prove a problem for you. For me, trading freedom was more important than the short list - although I would love to have a list as extensive as Watley's where I now am.
One more point. You pay for it, but I believe Watley is the only on-line firm that can provide real-time Dow Jones news. Same as brokerage firms get. |
