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Pastimes : Brokerage-Chat Site Securities Fraud: A Lawsuit -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (1227)	6/24/2003 6:33:50 PM
From: Jon Tara	Respond to of 3143

Because my broker reports the contra on each trade. And 99% of the time the contra isn't my broker. I doubt that my own case is unusual.

To: Gersh Avery who wrote (1227)	6/24/2003 6:47:18 PM
From: Jon Tara	Respond to of 3143

That sounds like a reasonable argument, Gersh. "would you then agree with me about when they are selling me stock from their own inventory? That is, they are not representing my interests, therefor they should not be able to collect a commission. " I'm not saying that I agree - only that it seems a reasonable argument. A broker might argue, however, that in any case they are REQUIRED to represent your interests. Indeed, aren't they required when filling an order out of investory to insure that they could not get a better price elsewhere? You should only get filled at or inside the BBO. One could still argue that perhaps they should not receive a commission when they fill from inventory. But you have to look at the individual broker, and what additional services they may perform when filling out of investory (for example, stopping your order at the current market, in a rapidly-moving market), or filling odd-lots which might otherwise not be available, out of investory. Your statement that "With most trades that take place, the brokerage is "the other side.", however, does not seem reasonable, and is not born-out in my own experience. No doubt, however, some brokers are different than others.