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I personally think it's arbitrary discrimination. I should be able to do at my own risk whatever the big boys do. I don't need anybody to tell me what's good or bad for me, and for sure not a government agency. U.S. options are not any more or less safe than foreign options. I also find it...

Theoretically yes. In reality, however, every position has usually an independent margin impact, unless your portfolio is highly concentrated. Schwab shows margin impact in their trading app (ToS) in a column in the positions list for each position in PM margin accounts. In TWS you have to...

U.S. residents won't be able to trade almost any futures or options on foreign exchanges, due to U.S. regulations. A few futures products are "whitelisted" by some U.S. bureaucrats (CFTC I think, or perhaps SEC). Foreign exchanges that want their products whitelisted for U.S. residents have to...

A lot of the financial rules and regulations are made and decided by non-elected government organizations and staff, like the CFTC and the SEC, with little oversight from Congress. I think the reason is that most members of congress don't have a clue about the technicalities of investing or trading.

I'm doing a similar test right now. I guess "traditional" margin is not portfolio margin. "Establish" is not "maintain", but the opposite. If the stated margin requirements for long options positions in traditional margin accounts are correct, then the margin requirement of the position is...

"but I believe all buy/sells will at least show up (for a millisecond) at an exchange...Then back to the broker" - My understanding is the equities orders that are routed to market makers do never show up at the exchanges if the market maker fills them. The market maker has the option to forward...

Re-reading Astrot's comment, I think he meant the transaction volume of the retail trader, not the volume of the stock. If so, then what is the limit? I heard there is a regulatory limit of 390 orders per day (averaged over a month) for options, or else brokers will classify the traders as...

Thanks for your input; but to be relevant, your items need to be quantified and supported by evidence, or else they are just expressing sentiment which may or may not be true. Unfortunately I don't have rigorous statistical data; but in my experience I get price improvements of ca. 90% of the...

No I'm not stipulating that you are trying to sell something here. I'm rather genuinely interested in understanding which use cases in term of the types of equities, order sizes, or speed requirements would benefit from limit orders at a direct access or fee-based "smart" routing broker vs the...

I provided specific use cases from years of experience. I have reason to believe that for all stocks that trade at typically $0.01 spreads, and probably many others that trade at larger spreads, limit orders at brokers that provide "smart" routing and direct access routing and that charge...

Robert I just did a 10 second Google search which said that 90-95% of retail orders don't go through lit exchanges. I conclude that I have a very small change of a retail market order hitting my standing limit orders when I use a direct access broker and route my limit orders to exchanges. This...

I know this is an older thread; but may I ask what kind of equities you used for your test? I'm asking because my long-run tests show the opposite result - almost always better execution at Schwab (formerly TD Ameritrade) than at IB. Also, how does your result reconcile with the study "The...

What you conveniently forgot to mention is that in the majority of cases, on your 5000 XYZ order you may earn a liquidity maker rebate of $10, but you will lose $50 to adverse selection (assuming $0.01 spread on 5000 shares) (on top of your $4.50 commission), as almost all retail marketable...

"MMs trade with Public Customer orders (for which they pay to receive) on the exchanges book. They don't see those orders in a different way than other orders for which they don't pay." - I'm not an expert in order execution; but this statement seems to be factually false. The majority of retail...

The study is about market or marketable limit orders of small size. You place a marketable order, and your slippage cost is $x - seems like a hard to argue fact. Unless your strategy doesn't fit those parameters, I'm not sure how any of the "stuff" that you mention (trading goals, risk...

"When the experiment started, we also traded 26 of our stocks each day with a target value of $1,000, again using the same logic to round to the nearest share; these stocks were rotated each day. For the 26 stocks with both $100 and $1000 targets, the two trades were placed at the same time with...

Thank you! The investing.com data looks usable, especially the eurodollar data series. I think the treasury futures data are not spliced based on roll data, which means they are not very usable for long-term performance studies. Also, for my purpose I would need historical futures duration data...

Thank you, Databento. Does anybody reading this thread know any free or low cost data sources for treasury futures or interest rates futures (eurodollar) daily data before 2017 ? I want to do long-term studies with historical data.

How many years back of eurodollar futures end-of-day or settlement data do you have? Also, what is the approximate cost? You mention $0.45 per GB in another thread; can you please elaborate how much financial data a GB might entail? Do you charge strictly by volume in GB? Thanks in advance

Can you please elaborate on your test? Did you use market or non-marketable limit orders? With the cheapest commission based broker that I know of, IB, orders routed to the major exchanges are about $0.0067 per share in commissions and fees - most of it are the exchange fees. For are liquid...