You really think we didnt know how to buy cheap puts or calls 20 years ago ?
Speak for yourself , , old dude
Can a broker intentionally not fill your orders?
- Thread starter bmoney
- Start date
You really think we didnt know how to buy cheap puts or calls 20 years ago ?
Speak for yourself , , old dude
To all the traders who favour 0 commission trading, where do you think the broker would earn its income from, there obviously has to be some way for them to be making their money. I am not a share scalper but forex so I am no expert here but I find it extremely hard to believe that anything can be had for free. Like with forex, be it 0 commission and wide spreads like with Robinhood or low commissions and tighter spreads as in with Fxview, there is after all a cost that is being paid to the broker. If that is missing, something is bound to be amiss.
Usually KCG love lots of market and limit orders as long as their not getting killed with ECN fees. How they make money with Pre Market and AH is beyond me unless their charging $.005 per share. Edit to add “Some allow 25,000 shares in AH for free”.
What is the difference between scalping on Tradestation and scalping on Lightspeed?
Robert Morse
Sponsor
I do not know enough about the TS offering to answer anything about them. I can only tell you that at Lightspeed we target the active professional trader. We offer a choice of trading software designed for fast order entry and fast execution. Most of our platforms have an available API. You get a choice of order types and routes to choose from and we provide access to the US Listed equity markets from 4am to 8pm. We offer flexible commissions (Per Share or Per Trade) and volume discounts with a high level of both trading support and customer service. And, if you choose me as your salesperson when you open the account, get me too as your rep.
Rob, these orders are only "toxic" if they are taking liquidity and not adding liquidity, correct?
Robert Morse
Sponsor
My general answer is that any order flow they lose money on or breakeven consistently is not what they want. Remember, each order they received has a cost to them, as they have to pay that broker a fee. And if you add liquidity, and they get to keep that, it might not cover the PFOF. If your order is posted with the MM, I'm not sure they get any.
I understand what you are saying, the cost for the MM might barely breakeven after the MM pays the broker PFOF, in the end of the day the MM is getting nothing from doing it.
The general idea is that HFT MMs want "uninformed flow", i.e. guys who's trading is mostly random within their turnover horizon. Indeed, smart takers are probably scarier to a PFOF provider than a smart maker (a maker at least leaves them with the order optionality), but they don't like either. A scalper or a flow trader who is competing with them for the same short-term mean reversion is almost certainly not welcome.