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This is sort of a general comment about all the concerns for
electronic trading in the CFTC regulated markets:
First how does it compare to electronic markets both
domestic and overseas: Securities in the US are about 80 -
90 electronic and appear to work well in terms of execution
and reporting. We can argue market quality forever, but in
terms of getting the trade done and getting it reported
these systems seem to work pretty OK. My experience
overseas is generally similar. I work in the securities
industry which prohibits much of my activity in securities
so much of my trading is in futures and futures options. I
use a a major well know national broker with an extensive
team at both the CME and CBOT. They handle lots of genuine
institutional business. They are quick....they are
good...and overall I bet they are not more expensive. In
fact given the amount of moaning and complaining about fills
I see on the forum, much of which I'm confident is
justified, it leads to the conclusion that if you are going
to trade the "clubby" marketplaces use a firm that competes
on service NOT price.
One bad execution costs more than 5 years of commissions.
Just a thought how come nobody uses Merrill Lynch, Dean
Witter, J Aron, DMG, J P Morgan, etc. Higher prices....not
if you really trade a lot. Higher minimumns..if you really
are that undercapitalized it is merely a mater of time till
you stop trading unless you get lucky. They won't talk to
me with $5M or $10M......yes they won't because given their
infrastructure and the service they provide your account
would not be economical.
As long as the CFTC allows the clubiness to continue you
should not have an expectation of good service unless you
use a firm that can create the right balance of FEAR due to
loss of business in any given pit.
Some of these major firms won't trade all the different
markets on a given exchange..GUESS WHY?
O.K. I'm off the soapbox.
Brokers either compete on service or price. Figure out
which one you want!!!!!!! How much more would you pay for
good service and a broker who fairly represented your order
in a trading crowd.
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