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Your experience is really unfortunate, but having said that there may be a
reason for your disappointing service.
Most options now trade on multiple exchanges with multiple dealers. This is
true of INTC, ORCL and MSFT. I'd check my confirms or with my broker and see if
my business is being done on the PHLX where orders are sent in exchange for
payment. At this point the only option exchange to pay for flow. The service
difference might be based your new broker selling your flow instead of shopping
it (as they might claim they do). Make certain the route to what is called NBBO
... National best bid offer. This might be a classic case of when lower fees
mean that the Broker has to gain favorable economics for themselves and this
MIGHT be why your service has suffered.
Do your confirms show where the trade was done?
Brian Massey wrote:
> If you look at most of the B/A spreads in popular stock options like INTC,
> ORCL, MSFT, etc you'll see spreads that are usually around 1/2 point! In
> other words B= 5 1/4 A = 5 3/4. That means on say a 10 lot you pay $500
> bucks slippage! That's absurd. Far be it from me to whine about slippage
> except when I know that sometimes, with the right broker I guess, you can
> execute your order between tbe B/A. With spreads like this there's plenty
> of room.
>
> With my old broker I could routinely split the b/a. Their rates were decent
> and service very good. I swtiched to a broker that had a better online
> platform with similar rates however but I cannot seem to get filled in
> between the b/a like I could at my old broker. I end up pyaing the 1/2
> point.
>
> You wouldn't think that introducing brokers really matter in options since
> they're all routed through the same guy in the options pit who is making the
> market. Is it possible that with some brokers you get better fills on stock
> options than others or is it pretty much set regardless of the IB you use.
>
> Brian.
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