Hello, I was wondering if anyone had any input on which is the best broker to use if I wanted to use the Sterling software and also which broker provides the most ECN routing options and reasonable prices on Sterling? I use Sterling for short term scalping of high liquid stocks but my broker seems to have limited routing options and not even access to all the books possible on Sterling. Obviously getting fills and routing options are keys to this strategy Also, if i want to get orders sent directly to a floor broker (who uses one of those new hand held devices) through Sterling do i need to find an Independent Floor Broker on top of my current broker or are there some brokers that have floor routing options? Thanks for all input
Your broker has to add the routes manually in most such installations, I think -- ask them about it directly, and they can probably add the routes you want. As for using floor brokers to trade US equities, may I suggest using a time machine? That era is history.
I don't think its as simple as asking the brokerage to add whatever ECN. don't they already have a preset list and wouldn't they only add an ECN if they knew there traders would going to trade on it, it does cost them money per ECN right? At least with my broker its not that simple as calling them up and telling them what ECNs I want. Thats why Im looking for a different broker with more options. And my experience as a proprietary trader was that we would get much better fills by having our orders routed to directly to some guy on the floor with a hand held device that was matching them. My question is how do you get access to these guys as an independent trader? Any independent floor brokers out there?
I have a few questions regarding your trading before I can make any intelligent recommendations as to a broker to get you to more ECNs, or off-exchange venues. What is your typical ADV? Most brokers base their fee structures and available venues based on the demand to access such a venue, as you mentioned, due to costs of maintaining memberships, compliance, connectivity, etc. I know of a few shops that use the Sterling front end and might be able to get you moving forward. Is it against forum rules for you to disclose your current broker? I presume they are not a current sponsor, but if allowed, Iâd like to know for my own knowledge who your current broker is.. In regards to a floor broker, I believe if your broker had a relationship with a NYSE floor broker, which still exist albeit in smaller numbers these days, you could theoretically get orders down to the floor for execution. Again, this would depend on your broker having a relationship with a floor broker.
What you want to do can't be done on an individual level, your high frequency scalping doesn't pay enough for the floor broker to make a living. You'd have to give him an amount of shares which simply isn't feasible to do on a daily basis in C (many, many million; no matter how good the fills are). He needs to get volume done outside of the HFT thing, otherwise you have to deal with the fills you get. Your share is your share. Best best is to through a prop firm you trust and make what you can while you work on another strategy... get your head out of the box, everyone is focusing on this one thing and ignoring tons of other opportunities out there which you can be the first to capitalize on.