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

To: OZ who wrote (7120)	3/5/2000 4:18:00 PM
From: Jon Tara	Respond to of 18137

Oz, of COURSE I assume that NITE makes money on-balance while paying for order flow. Hell, I even agree that many of the things they do might make them evil. But I would be foolish to walk away from free money. Again: when I want to buy at the bid or sell at the ask, I have two choices: a $7.75 commission and a $15+ commission ($20 on a 1000 share trade.) BOTH WORK EQUALLY WELL. For $7.75 I can be represented by NITE. For $20 I can be represented by ISLD. Both list my order on L2 equally fast. In my experience, both are equally likely to be executed. Which one would you choose? If you would choose the higher-priced commission, I'd suggest that you are letting your emotions rule your trading. I would agree with you if I did not have a choice of other execution routes. If I used NITE for all of my trades, I would agree that the true cost is not $7.75. But fortunately I DO have a choice, and am able to use NITE when they are an advantageous execution route, and avoid them when they are not.