Best firm for scalping?

D

dpg2020

I'm new to elite-trader.com and could really use someone's help. For the past year or so, I've been successful by scalping low-volatility, low volume NYSE stocks. I trade 250-300 times per month, trading each order for about 2,000 shares. I've used both Brown and Datek. Although I'm happy with their commissions, I've noticed that my orders are almost always routed away from the NYSE. In these low-volume stocks, the Interquote service I use tells me that these orders are not being sent to the NYSE, but to secondary markets. Thus, I get a lot a poor executions and end up paying more than the specialist. My question is this:

1) Is there a broker out there who can get my 2,000 share orders consistently represented on the NYSE for about $10 per trade? Is that what the 'direct access' brokers do?

Thanks so much for your help. I know my question may have an obvious answer but I'm still fairly new at this.
 
Am I correct in assuming orders directly routed to the NYSE will get fairer fills on my limit orders than if they were routed to secondary exchanges automatically by Datek, for instance? thanks
 
Originally posted by dpg2020
I'm new to elite-trader.com and could really use someone's help. For the past year or so, I've been successful by scalping low-volatility, low volume NYSE stocks. I trade 250-300 times per month, trading each order for about 2,000 shares. I've used both Brown and Datek. Although I'm happy with their commissions, I've noticed that my orders are almost always routed away from the NYSE. In these low-volume stocks, the Interquote service I use tells me that these orders are not being sent to the NYSE, but to secondary markets. Thus, I get a lot a poor executions and end up paying more than the specialist. My question is this:

1) Is there a broker out there who can get my 2,000 share orders consistently represented on the NYSE for about $10 per trade? Is that what the 'direct access' brokers do?

Thanks so much for your help. I know my question may have an obvious answer but I'm still fairly new at this.
More...

You might try calling Brown to see if/how you can specify to have your orders routed only to NYSE. I was a Brown customer about 5 years ago (when telephone orders were the norm) and I simply had to tell the clerk to "Buy 500 IBM at the market, New York only" => and they would enter the order to go to NYSE and not a regional exchange. Not sure whether this is still possible, but if you haven't already, you should ask.

Good luck,
-Eric
 
Originally posted by dpg2020
Am I correct in assuming orders directly routed to the NYSE will get fairer fills on my limit orders than if they were routed to secondary exchanges automatically by Datek, for instance? thanks
More...

With limit order and market orders on the NYSE due to direct access I am filled time and time again a penny away from the bid when buying and a penny away from the offer when selling more often than not.

Brown to charge $5 per trade is taking part of the spread from you. With 2000 shares this is a lot more than you realize.

IB is fine but if you are scalping 2000 at a time but I'd recommend having an additional backup broker for when they go down.

Robert
 
dpg2020,

I am in the same boat. Sick of trading with Datek. I have been checking out IB and I think I will be opening up an account with them next week.
 
You must log in or register to reply here.
Back
Top