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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Matthew B. who wrote (1701)	12/10/1997 1:03:00 AM
From: TFF	Read Replies (1) \| Respond to of 12617

Matthew: ask the firm straight out. If you don't get a straight answer someone on this thread will help you. Good Luck!

To: Matthew B. who wrote (1701)	12/10/1997 7:13:00 AM
From: steve goldman	Read Replies (3) \| Respond to of 12617

There are a few questions you need to ask your firm: 1. Do you make markets? 2. Do you act as principal in any trades? 3. Do you route my orders in listed stocks away from the NYSE or AMEX to less liquid third markets? 4. Do you route my oTc stocks for order flow? Do you do it non-discriminatorily? The key in line 4 is non-discriminatorily. For example, if GE is 74 3/8 to 74 7/16, 100 thousand on each side. A market order down to the NYSE is going to get you 74 7/16. There is no disadvantage. But if the stock was 74 3/8, 7/16, 2000 x 99,000, then you should go to the NYSE with a market order or the firm trader should wait a moment or two to see if the bid gets knocked down and you can buy on the bid. The market order might get you the bid. The specialist might stop you at 74 7/16 (which is what youwill get from a routed execution) and then possibly get you 3/8 if those are thenext prints. OTC routing...A trader might simply call a market maker to take them up on their quote. Lets say MLCO or MASH is offering stock at xx price. You call MLCO and take them up on their quote. There might be a huge que on soes which makes it impracticle, so phone based execution become a better option. You also might have a deal with that firm to receive order flow. In this case, you did what was in the best interests of the client and received order flow compensation. There is no disadvantage to the client. Basically, it all comes down to the philosophy of the firm and what they are shooting for. That is, when they get your order, does the trader think to himself, 'hey, we could route this and get $35 bucks but the customer could possibly get a 1/32 more if we don't, what should I do?'. If they are even thinking this, their approach is not for me. Personally speaking, I would never entrust my hard earned cash with any professional, lawyer, broker, bank that I had to worry that they did NOT have my best interests in mind or simply did by business without thinking whether the course of action was in my best interests or not. The last thing you want to worry about is trusting your firm. Its tough enough picking stocks and trying to time your transactions.. If the firm is committed to your best interests, getting you the best price, then they will do well for you in the long run. YOu might have to pay a few bucks more here and there, at times with price improvements, you might actually net pay less, but you will in the long run do better. Regards, Steve@yamner.com