I use Mastertrader.com (owned by Pristine providing lots of education & real time alert program) as my Real Tick (popular direct access software that has many good alerts) broker. Ameritrade has a Datek Direct trading which use level 2 direct access with the same low comission (I am using it to swing trade AETH now). It also has Command Center which I have not learned how to use it yet. Looks like another direct access interface. So many things to learn & so little time
Yes, I'm interested in the answer to this question, too. I understand that there is no middleman with a direct access broker, but aren't some orders direct with Ameritrade? I'm a swing trader and haven't been sure whether to make the leap to a direct access broker. Thank you for this thread. I'm an Ameritrade user and have been avoiding learning a new system, even though everyone says I should switch to IB. I learned how to load Ameritrade's Level II quote program, then how to make it actually run. Then I loaded their Command Center and learned how to use it. Plus their Advanced Analyzer to create stock filters & view technicals quickly. After all of that, I didn't want to go thru learning a new trading system plus a new chart package, and find another filtering software. Now I'm ready after reading this thread. I'm even diving into learning software that allows backtesting on strategies. The advantages of Ameritrade to me: (1) It contains the Command Center (2) Low commissions to buy a large # of stock (3) It has the Advanced Analyzer & Level II screens. (4) I already have the software loaded & know how to use it! Disadvantages of Ameritrade: (1) Sometimes orders don't appear in Level II. I've placed orders that just get passed up & watched the bid/ask price go right by my limit. If I'm asking to sell at $0.4970, how can the last sell price zoom right past me to $0.5000? (2) There is no trailing-stop-loss capability (3) There are no realtime charts, except for the last 10 minutes in the Level II Streamer, but you have to have the stock cued already, and it has no technical indicators on the real time chart (4) The Command Center allows limit orders, but you have to go to the slow clunky screen to place stops orders. (5) Advanced Analyzer only shows daily data - no intraday - at least not on my computer. - My 2 cents, Deb Trader
Any broker that lets you route to any number of ECNs (Electronic Crossing Networks), as opposed to the usual "best price" nonsense. Examples would be ISLD, TMBR, ARCA (when they're up and running, that is ) You want to hit the best possible price by using your Level II and direct access. The shorter the timeframe you trade the more critical your fills become. Let's face it; if you're trading 500 shares of INTC for a 2 week swing trade then 1 or 2 cents either way won't mean much. If you're trading 1k share blocks every other minute a 1/4 cent will add up big time.
Yeah, I used them in college, and had a similar experience. Tried to cancel an order and no response from their system. The amount I lost was well worth my lesson learned. Don't use datek if your serious. On busy days, they're not as reliable.
Thanks for the explanation. Something I'm not sure of is that with Ameritrade, I don't have to pick an ECN. How does it make my trade go thru better if I pick ISLD, TMBR, or ARCA? It seems like it just adds another step to the process to have to decide which ECN to use. (Obviously, I'm missing some important piece here.) Thanks, - Deb Trader
It actually removes a step from the process. By choosing your ECN, you don't have to send your order to your broker, have them decide which is the best ecn and then have it sent on to the ECN. Less process means quicker execution.
Take a look at their SEC disclosure: http://www.advancedclearing.com/gifs_new/fill.gif You'll see that most orders don't get executed on the NYSE. They get sent mostly to Knight or the Chicago Stock Exchange where they are receiving payment for order flow. This doesn't necessarily mean you are getting a bad fill but it doesn't help your odds and also adds another step in the process. Firms, such as IB include all the ECN's in their route (TMBR can be thought of an internal route) and send your order to the exchange with the best price. This method should provide faster fills and better prices.
Datek used to rebate payments for order flow (since they owned or were co-owned by ISLD and the conflict-of-interest questions would certainly arise). I have no idea what AMTD does now, as I haven't had an account there in over a year. The aggravation I've saved by using IB has more than made up for thier stinkin' order flow rebates and other marketing gimmickry. Leaving that broker was the best trading decision I ever made. Yikes.