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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: sim chambers who wrote (13623)	5/8/2000 12:52:00 PM
From: Spytrdr	Respond to of 13953

Global exchange looks to tap Net boom Nasdaq officials envision a Net-based global stock exchange where the most liquid stocks would flow freely around the world, traded by European, Asian and U.S. investors. news.cnet.com

To: sim chambers who wrote (13623)	5/8/2000 12:54:00 PM
From: Spytrdr	Read Replies (1) \| Respond to of 13953

ETrade will offer direct access trading soon.

To: sim chambers who wrote (13623)	5/8/2000 9:32:00 PM
From: Quinn Dunlop	Read Replies (1) \| Respond to of 13953

I got that same call. I trade over 1200++ times a month w/Etrade. Yes, ARCA is a very powerful tool if used properly. I have used it since 1997 with AB Watley and now MB Trading (Real-Tick 3 --gives me full access to ARCA order book). I still use Etrade much more because I prefer to route my orders to MMs soley for auto-execution and liquidity. For trading these days, liquidity is EVERYTHING. The most important thing you are overlooking is that NITE/HRZG etc give Etrade customers auto-execution on the buy/sell on a vast majority of Nasdaq securities. They provide the necessary liquidity to the online brokers customers. You are making a TON of money (like me by the way) because a large majority of our orders are auto-executed. With ARCA and other ECNs, you need excellent trading skill/timing and need to route your BUY/SELL orders right into the buyers/sellers or you will have to a tough time getting in or out. You don't have to worry too much about that via MMs. The PowerEtrade tools & level 2 will not provide full ARCA order book access. In essence, you will be trading somewhat blind because you can't see who's bidding or offering just like you would with say ISLD book. Many years ago I felt the same way about MMs..Jerks are ripping me off --chopping off my orders to get a profit onmy order flow. But, I came to realize that it much more important to get fast executions and liquidity than worry about what they are doing with my orders. Yes, you can save $$$ with ECNs - only if you skilled enough to buy/sell into the buyers or sellers. You will notice the difference right a way especially when ARCA finds no liquidity in its and other ECN order books and Selectnets a MM -- they have 30 seconds to execute your order -- that is a human MM trader who needs to press a button to get your order filled. A very long time in today's fast moving market. I still use ARCA maybe about 8-10 trades a week with MB Trading -- only in the right circumstances. If it is a fast moving stock, then I use ISLD or Etrade instead of ARCA. Slow mover ARCA works just great!! But, ARCA is not your order routing choice on a fast trending stock on the up or down side (read selecnet preference hell blackhole -- its achillees heel). I hope Etrade enables ARCA only* as an order routing option and NOT as a DEFAULT order routing. I think it would be great an an optional order routing choice especially for pre and post mkt trading. But, if you want to get in and out real fast on the bid or ask and there is NO liquidity in the ECN order books, Etrade MMs are a far better order route. Trust me on this -- I had 47 roundtrip trades via Etrade today - most were auto-exec on the bid for selling and ask for buying. Too hard to do that with ARCA order route -- you need liquidity and are at the mercy of the MMs on SelectNet to get you in and out. LOL! Quinn