Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: IdiotJed who wrote (2953)	4/24/1999 7:24:00 PM
From: Serge Collins	Read Replies (1) \| Respond to of 4467

MUST READ: Wall Street Journal April 23, 1999. There is a great article in yesterday's WSJ entitled, " Regulators Worry That Online Investors May Be Getting Poor Trade Executions". One line in the story goes, " Regulators and industry participants worry that online investors, without knowing it, are sometimes getting poor trade executions in return for low commissions." This is precisely the point I was making last week when I said discount investors are getting ripped off. They talk about wholesalers who process the trades and skim something off each trade for themselves. The article also discusses manual trading (the only kind we have in Canada), and states that manual trading is one big rip-off. It allows the broker to trade stock from its own inventory. Investors unwittingly are buying stock from the broker at a higher price than the going market price, and selling stock to their broker at a lower price than the market price. The differential is a premium that investors don't even realize they are paying. As the article states -- you get what you pay for. The article mentions Toronto-Dominion as one of the practitioners of this. If GreenLine is doing it, you can bet they are all doing it. That probably explains why I put an order to sell something at $57.50, and got filled at $53.30 I would post the article but it is from the WSJ Interactive Edition. The same article was in yesterday's paper. It's worth reading as it is the first article I see that deals with this growing problem. The SEC is investigating the problem in the U.S., but don't expect a similar investigation in Canada. This is the land of Bre-X, YBM Magnex, Philips Services, Livent, David Peterson and Jean Chretien etc. etc. etc.