There were some so-called zero commissions brokers. One of them I remember is the freetrade which may belongs to Ameritrade. It seems there are no one talking about them. What are they doing? Are they ok? Anyone tried using them?
Sure, they are okay if... 1. You do not mind using all Market Orders. 2. You do not mind your broker taking either payment for your order flow, or the other side of your trade every time. 3. You do not mind paying extra for limit orders ($5 each usually). 4. You do not mind having limited capabilities, i.e. no AH trading, no options trading, and no margin.
I have an accout with one. Ususally it's ok, but i started trading the qqq and they print me where the ASE quote is even if ecns are lower. For example, they printed me above an ecn by 10 cents, when I called they said the fill was good cuz they go off the ase quote. well that wasn't commission fee it cost me an extra $95 (100 -minus comish from my dat broker)
Or people who use only market orders anyway. ...although I can't think of anyone who would use only market orders and not fall into the category "Mom and Pop".
Read some old posts from about a year and a half ago. For about 3 or 4 months there were quite a few posts on that. Robert
Ok, I'll bite. Will they fill you at the ASE price if they are LOWER (better) than the ECN market? If so, then it's a wash. If not, you're being taken.
Don't be fooled by cheap imitations. But wait! There's more. Call within the next 30 minutes and we will send you this small cotton robe absolutely free. You just pay a small shipping and handling.