I checked the Echotrade site and it says they charge .004 per share to trade on ARCA. Now let's say i place an order to buy 1000 shares at the market through ARCA and i get 500 from the ARCA book paying .004 per share. Then i get filled for 200 shares on Island, then a 100 shares on a Selectnet preference to BRUT, and then finally 200 on Supersoes. Now my questions are: do i also pay the Island fee on the 200 shares; do i also pay the Selectnet fees of .10 per order entry and .90 per order execution trading with BRUT, as well the BRUT ECN fees and the .25 Selectnet cancellation fee;do i pay the Supersoes fees of .10 per order entry and the .002 per share executed; and finally am i also paying the .004 ARCA fee on the whole 1000 or just the 500 i got filled from the ARCA book. Any help is appreciated.
ARCA does not pass through "pass throughs." So yes, you would only pay .004 on 1000 shares. But now that REDI and ARCA has merged, and now that SuperSOES fees are going up, ARCA fees may rise too. We'll find out pretty soon.
So if you ONLY pay the ARCA fees and no other ecn, selectnet or supersoes fees, why would anyone use selectnet to preference a market maker or selectnet broadcast their order.In addition why would anyone trade through INCA which has the highest ecn fee per share when you can just use ARCA and have the chance to have your order routed through INCA anyway?
>why would anyone use selectnet to preference a >market maker or selectnet broadcast their order Well, now days that is an excellent question with Selectnet reduced to a non-liablility system, but something tells me that isn't how you meant it. I think you mean to ask why wouldn't you just route through ARCA rather than the Selectnet routing IF you did desire to use the SelectNet route. The answer to that question is that with the implementation of SuperSoes, ARCA doesn't route to MMs through Selectnet anymore (it was a time sink anyway). So, if you really do want to route to an MM through Selectnet, you'll have to do it yourself. >In addition why would anyone trade through INCA >which has the highest ecn fee per share when you >can just use ARCA and have the chance to have your >order routed through INCA anyway? I'm sure for many, the answer would be speed, but for me at IB it doesn't cost any more to route to ISLD, SuperSoes, INCA or any other route. God I LOVE those all inclusive penny fees. JB
Why would people use INCA as opposed to ARCA. I always thought it was speed. I place an order on INCA and its there instantaneously for everyone to see including institutions. Bam its there I see it (got my own INCA screen) and sometimes it gets done right away particularly if you know there is a market buy or market sell on INCA. I'm not sure about ARCA but I believe by the time it searches for the best fill you may lose out.