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Jeff Hudis wrote:
>
> Greetings,
> I have been thinking of switching to Datek from National Discount
> Brokers. I am attracted by Datek's price difference and the emphasis on
> quick fills. I seem to recollect some postings in this forum to the
> effect that Datek was very slow on executions (especially in early
> trading). Has anyone experienced this? Also I was wondering if anyone
> had traded by phone with Datek and how efficient it was (for times when
> not at my computer. How have your experiences been? Any input would be
> appreciated.
>
> Thanks, Jeff Hudis
I have used Datek for 6 months.
First the good report:
When all is working correctly (your computer, your ISP, the internet,
their servers and system) DATEK gives excellent executions (usually in
10 seconds or less for market orders). I would say "all is working
correctly" about 80% of the time. Datek calculates your margin account
buying power in real time so you know just where you stand. Their
NASDAQ and NYSE executions are equally fast. When you enter a limit
order on a NASDAQ stock better than the inside market they enter it in
their own system for the world to see. For example: if the inside
bid/ask is 70 by 70.5 and you enter a buy order for 70.25, Datek enters
it in their own ECN trading system, ISLAND, and it will show on a level
2 quote screen as the new inside market (70 by 70.25) for all the world
to see.
Now for the bad report:
Some days DATEK seems to be slow overall and you can wait and wait for
even a market order to get filled. It's like the system is moody, so
some days, all day, executions are lightning fast and other days
excruciatingly slow.
Placing orders by phone can be a disaster if you need to get out quick.
If their internet system is down, the phone system can get overloaded
fast. I once waited on hold for 20 minutes before my order was taken.
Even if their internet system is working and you need to phone in an
order, it is rare not to be placed on hold before talking to a trader.
In conclusion: Datek has its problems, but from all the postings and
conversations I've had about on-line brokers, Datek seems to be the best
value for people who need quick executions at a low price ($10 per
trade is hard to beat).
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