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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Matthew L. Jones who wrote (4089)	9/16/1999 6:58:00 PM
From: funk	Read Replies (2) \| Respond to of 18137

I agree with you. I was going through some old posts, digging up some dirt on someone, and i found this. I still stand behind it, but at the time I was pretty much laughed at. Message 7441111

To: Matthew L. Jones who wrote (4089)	9/16/1999 7:04:00 PM
From: BenThair	Read Replies (2) \| Respond to of 18137

It never ceases to amaze me how people who have obviously never used a good trading platform with a direct access brokerage continue to criticize it as costly. If the only advantage is getting you away from a broker with a conflict of interest (receiving payment for orderflow and hence working harder for the contra party to your trade than for you) it is worth the added expense. You are correct in that many people have not used a good system. However, I do have a question. In looking for a direct access broker, I am being told that as of August, you must have a Series 7 licenses to use a direct access system. Is this true?

To: Matthew L. Jones who wrote (4089)	9/16/1999 10:51:00 PM
From: Time Traveler	Read Replies (2) \| Respond to of 18137

Is myTrack a direct access broker?

To: Matthew L. Jones who wrote (4089)	9/19/1999 2:22:00 AM
From: Bilow	Read Replies (1) \| Respond to of 18137

Hi Matthew L. Jones; Re those direct access brokerage accounts versus brokers with a conflict of interest... There are sometimes stocks that a direct access user can watch the level-2 on, but that he cannot purchase or sell using his direct access account. He can then send an order into a regular broker, and see how it gets filled. There are some brokers that are quite fair, I am fond of Charles Schwab and Freeman Wellwood (sp?), in particular. They won't try and use your order as a backstop, and they will give you okay execution &c. (But most people could do a better job themselves, most of the time. The one exception to this is when you are trying to make the spread. For some reason, it is easier for the market makers (like MASH) to make the spread than it is for the ISLD.) As an example, a trader puts an order in to buy 2000 shares of a stupid bulletin board stock for 7/8 through a regular broker. The ask is also 7/8, so the broker should simply clean up the shares at the ask, and then place a bid at 7/8 for the remaining shares. Instead, the broker places a limit order to buy just above the bid, intending on making the spread (for himself). The direct access trader then has to call up the broker and make him do what was asked. Observing an instance or two of the above will give you an idea of how the retail brokers make their money. Another place where they make life tough for you is in markets that are running. They just can't fill your order then, but if you were direct, you could fill it (though maybe not at the price you would like...) -- Carl