Low cost broker that doesn't clear through Penson

[tickmagnet]

Platform doesn't really matter , commissions id say yes if you trade volume, what matters is execution.

 

[rmorse]

Quote from tickmagnet:

Platform doesn't really matter , commissions id say yes if you trade volume, what matters is execution.

That's why we offer not only DMA, but also option algos. Also, access to the complex order books, and for larger accounts, access to floor brokers.

 

[jeb9999]

Quote from rmorse:

Wow. Penson brokers don't sell order flow. The way it works, is that whom ever owns the Direct Market Access (DMA) route being used, directs the order flow to an exchange and gets paid by a MM or exchange for sending the order there. If you choose a "smart" route, they choose the exchange. If you have DMA, you choose the exchange. Either way, someone gets paid. It's NOT us. I know for a fact your orders are directed to an exchange and OX gets paid for the route. and yes, it might be Citadel, Timber Hill, Barcap, GS, etc. This payment for order flow helps keep your rates down.

All DMA platforms are fast. If you find their platform easy to use and gives you the tools you need, then fine. There is no such thing as the best platform, just what works for you. Everyone has different expectations and requirements. That's why we offer 4 platforms.

Wow, wow, wow, where did you get that Penson nonsense from?

Penson brokers sell order flow day and night.

OptionsHouse is a broker that clears Penson and they sell all their order flow.

OptionsHouse 606 for the quarter ending 09/30/2011 is here for all to read:
http://www.optionshouse.com/asset/pdf/quarterlyreports/20110930.pdf

 

[tickmagnet]

That's exactly what I said , order selling is a revenue source.

 

[rmorse]

Quote from jeb9999:

Wow, wow, wow, where did you get that Penson nonsense from?

Penson brokers sell order flow day and night.

OptionsHouse is a broker that clears Penson and they sell all their order flow.

OptionsHouse 606 for the quarter ending 09/30/2011 is here for all to read:
http://www.optionshouse.com/asset/pdf/quarterlyreports/20110930.pdf

They have their own routing, so they can sell their order flow. Penson has their own routes too. Not all brokers do. It has nothing to do with Penson. Very few firms that control their DMA don't get PFOF. Every discount online broker does. My point was that the brokers don't sell the order flow unless they have spent money on the pipes that provide DMA.

 

[Grandluxe]

Quote from rmorse:

They have their own routing, so they can sell their order flow. Penson has their own routes too. Not all brokers do. It has nothing to do with Penson. Very few firms that control their DMA don't get PFOF. Every discount online broker does. My point was that the brokers don't sell the order flow unless they have spent money on the pipes that provide DMA.

Any insight on the financial viability of Penson and whether our funds are safe?

 

[rmorse]

Quote from Grandluxe:

Any insight on the financial viability of Penson and whether our funds are safe?

Your never going to a guarantee that's absolute. You should always use institutions that make you comfortable. The reality is that if your a "customer", not a BD, at Penson you'll have SIPC and excess SIPC. Penson has plenty of excess capital and just sold a foreign sub for over $30MM to add to that. They are cut expenses to become more profitable and the most important fact is that the DON"T have a trading desk. All of the Prime Brokers that failed, LEH, BS and MF Global, all had problems because of excess risk and leverage in their prop trading, not from losses from brokerage activities.

More than half our client are at Penson and choose to be there.