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As a fee paying client who is a small part of a firms revenue you wear all
Murphy's Law losses and no windfall gains from your broker. The solution
is to become a really big client get charged really low
brokerage and get compensated for shitty fills because they want to keep
you.
I HATE HEARING FROM BROKERS THE FAMOUS WORDS "NOT HELD".
Does anyone else suffer from this? Moving from Insto trading into trading
my own
account was a major eye opener. The treatment the private guys get is
terrible for
the high transactions costs. I guess it will never change, but I want to
see some changes.
Issues of corrupt and illiquid New York markets aside, the effect of a
brokers actions for a small
trader are a drag of a around 4 to 5% on returns from my experience. Has
anybody else a
view on this?
David Hunt
http://adest.com.au
----------
| From: Kevin <klkevin@xxxxxxx>
| To: omega-list@xxxxxxxxxx
| Subject: Re: New York Markets
| Date: Tuesday, April 21, 1998 11:33 PM
|
| > This is in response to a thread on this list about a month ago
| > regarding the honesty (or lack thereof) of floor brokers and
traders
| > on the New York exchanges.
| >
| > Last week, I received a terrible fill in OJ. I was attempting to
sell
| > 5 JON8 at 98.00 on a stop, but was filled at 96.40. Of course, I
| > complained to my broker, who will remain anonymous. The broker
was
| > sympathetic, but refused my request for credit, and attributed the
| > large slippage to the "New York markets." Specifically, the
manager
| > of the particular firm with which I trade stated that he always
| > recommends to customers that they "steer clear of the NY markets,
as
| > they are full of crooks!" That is quite an endorsement, I must
say.
|
| I would not say that they are full of crooks, they simply have a
| different market structure than the markets you are familiar with. I've
| seen conditions where your fill could be considered good. Let's face it,
| if there are no bids, that may have been all he could do.
|
| The manager of your firm has two issues there, 1) He is sick of the
| complaints 2) The costs of doing business in FCOJ are incredibly high
| and they don't make much money on the trades anyway, therefore he would
| just as soon not deal with it.
|
| I would not condem the NY markets across the board, you simply have to
| recognize you are dealing with a different animal.
|
| Kevin
|
|