Slow NYSE execution with CyberTrader

gotwals · Oct 10, 2002

I use CyberTrader to trade listed stocks. For several months the delay between submitting an order and when it was executed was usually somewhere (roughly) between 5 and 15 seconds. The log lists the orders as going throuh "N", and I was satisfied with the execution speed. Then somewhere around 16-Aug CyberTrader stopped using "N" and switched to "SCHWB" which I take to stand for Schwab. I am guessing that to cut costs CyberTrader was "asked" by Schwab to switch from N.

Now I really don't care who CyberTrader uses to route their NYSE trades, so long as the execution time doesn't increase. Well, guess what. Now the execution time can be 30 seconds or even more than a minute. I gave them a call today to complain and they admit the execution time is slower, but they say Schwab needs time to get the kinks ironed out of the system.

Has anyone else had this problem with CyberTrader and listed securities? Do you have a good firm to recommend, who offers direct access trading and fast NYSE access?

Free Thinker · Oct 10, 2002

that sucks.since schwab owns cyber you can bet they wont go back too.switch to ib and get charts elswhere,like qcharts or esignal.you will be happy you did.

JWS11 · Oct 19, 2002

I had a similar problem with CybetTrader (actually, several other problems as well) and switched to a Realtick-based broker and then to IB to solve them. TradeStation is pretty good in this area too, imo.

chasinfla · Oct 19, 2002

one of the ways discounters make money is by matching orders internally. they always look at your order first before sending out to the exchange. That was the rationale behind the acquisition: buying order flow.

bdavis468 · Oct 20, 2002

Originally posted by chasinfla
one of the ways discounters make money is by matching orders internally. they always look at your order first before sending out to the exchange. That was the rationale behind the acquisition: buying order flow.

Thats the difference between Direct Access and firms that aren't Direct Access. I thought Cybertrader was Direct Access?

SWJ12 · Oct 20, 2002

I switched from CyberTrader to Datek then to IB. I noticed the same thing with CyberTrader, but my decision to switch was based on commissions. IB's execution speed seems faster than both CT and Datek IME.

chasinfla · Oct 20, 2002

Originally posted by bdavis468

Thats the difference between Direct Access and firms that aren't Direct Access. I thought Cybertrader was Direct Access?

Exactly. To be sure they once were. I can only surmise by reading the thread that, now that Schwab owns them, they're picking off the orders.

Fleet told a shareholder's meeting that containment of order flow was a goal in its acquisition of Quick and Reilly. Brown and Co. won't (or didnt') allow direct access (their thing is to route to the regionals first -- "we search for the BEST execution" -- who paid for the order).

I think the regionals have been rebuked for paying for order flow. The whole thing is changing regularly, it seems.

On the other hand, to my knowledge, Tradecast remains direct access even after Ameritrade bought them.

gotwals · Oct 20, 2002

CyberTrader is definitely a direct access system. However, for all brokers, NYSE execution goes through the specialists. During one of my complaining calls to CyberTrader, I was told that the Schwab system (through which NYSE orders are now routed) did not have "direct access" to the NYSE electronic trading system. I then asked if this meant that someone had to retype my orders, and I was told that my orders were passed on electronically.

I asked when execution speeds would improve, and I was not given an answer. I guess this means I have to switch to another broker. Most people who have commented on this topic have mentioned IB, and I will check them out.

nitro · Oct 20, 2002

Originally posted by SWJ12
I switched from CyberTrader to Datek then to IB. I noticed the same thing with CyberTrader, but my decision to switch was based on commissions. IB's execution speed seems faster than both CT and Datek IME.

IMHO, you need to be more scientific about this though. IB executions are very fast when TMBR is on the other side of your trade. However, if the order gets routed to the NYSE, I have noticed that it can take forever to execute.

I have been studying the way that quotes are disseminated from the NYSE - I suspect that part of the problem is the datafeed gives the illusion of a market being where it is...

nitro

bdavis468 · Oct 20, 2002

Originally posted by nitro

I have been studying the way that quotes are disseminated from the NYSE - I suspect that part of the problem is the datafeed gives the illusion of a market being where it is...

nitro

That is a very good point.