TD Ameritrade Follows IBKR, Schwab, Introduces $0 Commissions for Online Stock, ETF and Options

Is anyone aware if the market makers are under any type of best execution constraints other than not violating NBBO? For example, say the NBBO is 101.10 / 101.90 in stock XYZ. Customer1 send a limit order to buy at 101.50. The broker forwards the order to a MM. Customer2 then sends a market order to sell in XYZ. The broker then sends that order to the same MM. Does the MM have any obligation cross the order at 101.50 (or offer price improvement over the 101.50 bid)? Or can they fill both and pocket the free $.40?

Also, I don't think any firms will publish this, but does anyone have any insight on how the broker decides which MM receives a given order?
 
jtrader33 said:
Is anyone aware if the market makers are under any type of best execution constraints other than not violating NBBO? For example, say the NBBO is 101.10 / 101.90 in stock XYZ. Customer1 send a limit order to buy at 101.50. The broker forwards the order to a MM. Customer2 then sends a market order to sell in XYZ. The broker then sends that order to the same MM. Does the MM have any obligation cross the order at 101.50 (or offer price improvement over the 101.50 bid)? Or can they fill both and pocket the free $.40?

Also, I don't think any firms will publish this, but does anyone have any insight on how the broker decides which MM receives a given order?
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%% That why i like liquid stocks/ETFs, to wide bid ask for me.....................................
 
I was thinking with the playing field being equal with zero commission costs in equity trades and now most copying Robinhoodwith free trades I think many people will opt for ameritrade etrade and Schwab instead of Robinhood only because of the amount of education and options that come with a full service online broker, so now I feel that Robinhood might up them at their own game and try to win back competition. Free trades aren't enough anymore. Robinhood may up the ante and try their 3% HIGH yielding savings account once again to draw in more assets or bring down margin rates to the lowest in the industry. Should be interesting to see how this all goes down and if robinhood can hold onto its $7 billion dollar valuation
 
A lot of people use Robinhood thanks to the utter simplicity of the app. It's just tap tap tap done. The instant deposits and free options trading don't hurt either.
 
Today (Oct. 3) at Ameritrade, I'm having exchange and clearing fees of $1.93 per trade on 5000 shares. No comission, but there will be these fees.
 
S2007S said:
I was thinking with the playing field being equal with zero commission costs in equity trades and now most copying Robinhoodwith free trades I think many people will opt for ameritrade etrade and Schwab instead of Robinhood only because of the amount of education and options that come with a full service online broker broker......
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%% I have + may still consider, checked out Suretrade.
BUT charging me $40 , if i want to take money out. Even worse , for me i may or may not use inactivity fee $50@ quarter, if 15 trades not done/ Based in Bahamas/hurricane alley. IBKR, AMTD,SCHW looks better

15 trades per quarter could be OK in a bear market, like last last quarter in 2018; but in a uptrending bull market nicely above 200 dma- i dont want a broker bribing me with that kind of penalty, simply to churn commissions, for thier profit....................................................
 
Math_Wiz said:
If anyone knows the answer to the following question, please post here: Are all three of these major brokerages offering free trades only with web-based trading, or do you get nice platforms and possibly direct access trading?
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%%
IBKR has had direct access;
good/great broker+ they seldom answer phone ;=ALLY, AMTD answers phone well................IBKR also has a credit card if you like to pay interest/overspend LOL.The latter maybe good for stock holders;SCHW +ALLY have big banks.....................................
 
Math_Wiz said:
If anyone knows the answer to the following question, please post here: Are all three of these major brokerages offering free trades only with web-based trading, or do you get nice platforms and possibly direct access trading?
More...
Hunting around the websites shows no differentiation in fees for using platforms. Looks like IBKR is going to have to cut the Pro fees to be competitive.

From TD website:

"We offer $0.00 commissions on online exchange-listed U.S. stock, domestic and Canadian ETFs, and options trades. Access to our platforms is free, with no account or trade minimums. We give you access to over 2,300 commission-free ETFs** and free level 2 data. And we deliver added value with our execution quality, with 98% of executed market orders receiving a better price than the National Best Bid and Offer (NBBO) at the time of routing."
 
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