Prodigal Son? -- Executions and Cost.

Discussion in 'Trading' started by chasinfla, Apr 4, 2020.

  1. Once again considering coming back to active trading, which I've been away from for some time.

    Don't want to make a big deal out of it. Was thinking of just wiring up my Schwab account. But this concerns me on two fronts:

    1. Looks like I'm captive to Schwab's order flow. Not necessarily a deal-breaker for liquid stocks, is it?

    2. When I get going, 150 r/t a day isn't uncommon (no commish looks hawt). That functions best not just with broad market access, but also with really well made software. Any comments?

    Thanks in advance.

    PS if you're a dick, just skip this, OK?

    (Holy ever-loving !@#$%^&*( ...I began posting here 18 years ago!)
    Last edited: Apr 4, 2020
  2. Robert Morse

    Robert Morse Sponsor

    Maybe you should consider an active trader platform like Lightspeed trader. We charge commissions but they are worth the speed, choice of routing and customer service.
    Equalizer and tommcginnis like this.
  3. tommcginnis


    Welcome back! (If it's not too early to say....)
    Schwab: props to them for the visual familiarity they (might) bring to your trading, but regardless, I would only use them as a straw man, and would undertake a review of the current offerings. But too, you're right about pretty much *any* platform/broker not being a deal breaker for liquid-stock trading.

    150rts/day: But for this much trading (and all the price-ladder/order-book visual negotiations that go on with 150 round-trips in a day), I would recommend a DMA, for sure. "Price improvement" 2¢ 3¢ 5¢ a pop??? That's some serious coin at the end of a 150rt day. FWIW, I've been with IB for ~15 years now :)wtf:), and it's TWS has not changed materially in that time. (A glorified spreadsheet, to be customized by you you you.) They now have "Mosaic" for those with who want to squeeze 3-4 monitors worth of goo onto 1 -- lots of au'currant cuteness. :vomit:
    But if you're up for 1-click trades, IB's TWS will have you set up for that, brackets, SL only, whatever, in short order. (So to speak.) And great rates on held cash, too. :D

    And per Bob Morse comment, trade commissions are probably in your future. You get quality and speed, and possibly more comprehensive data with the commissions. If your patterns can get by without that, then a "free" platform might be doable for you. I'm just doubtful.
  4. Dazz


    when you say "worth the speed" what speed do you speak of? Has it been measured and by who? What are the values? And how is the cost of speed determined and compared to competitors?

    I would submit you do not have a particle of comparative information!!!!
  5. Robert Morse

    Robert Morse Sponsor

    That is a very good and fair question. I can't document the difference, yet we have been told in emails and phone calls over the past few months by users of those free services, that they are getting delayed reports and slow executions that can take minutes from the equity market makers throttling back order flow or from bandwidth constraints. They are also telling us of 1 hour to 2 hour waits to talk to customer service. They see the biggest slowness at and around the open and first 30 min of trading. This is what their customers are telling us. I joined Lightspeed in July 2016. This is the busiest our new accounts department has been in my memory and most of these accounts are being moved from online brokers with free commissions from active traders unhappy with that offering. We have started to ask current clients that have emailed us if we can post their comments online. Here is one: Today was my first day trading back on the Lightspeed Trader platform again from TD Ameritrade Think or Swim. All I have to say is this is the absolute best platform I have ever traded on. Executions were extremely fast with no lag. I just wanted to send an email thanking you for getting me connected. This is absolutely amazing! ROB, SANTA ROSA, CA, one more I just want to say this, with all the extra volume and volatility we've seen recently, I know many brokers have had major problems with quotes and orders. LS has been flawless! Thank you! SHANE, REXBURG, IDAHO - All I can say is try us to see the difference with this promotion- 10K2020-and choose me to be your salesperson and you will experience the difference.

  6. Dazz


    I thank you for the "light speed" response but I am afraid email comments from customers are worthless and you should know that. I am asking about the attributes of your product as you advertise it. So please let let me ask again:
    when you say "worth the speed" what speed do you speak of? Has it been measured and by who? What are the values? And how is the cost of speed determined and compared to competitors? These are fair questions.

    You can start with: we have no data or information to support our claim of light speed; the speed of light has no relationship to the speed of internet trading? it is puffery? market bravado? Hype?
    Last edited: Apr 5, 2020
  7. @Dazz @Robert Morse

    First off I would like to thank you for your tremendous effort on this forum, Robert. I have been a customer of Lightspeed for over a month now, and I have to confirm everything you have said. The fills are indeed extremely fast and help to get the edge when trading momentum. Dazz, when trying to get into a stock that's moving fast, an execution difference of 10 cents (really realistic estimate) could mean a lot. This kind of execution is unavailable with other brokers (for example IB), and I have tested it myself. I am a very satisfied customer and would recommend Lightspeed to anyone who can handle it.
    Robert Morse likes this.

  8. It's generally true that you don't get what you don't pay for. I suppose that's why I was asking to begin with -- to see what the practical limitations of the freebies would be.