Do some future brokers take other side of order?

Discussion in 'Retail Brokers' started by sammybea, Apr 1, 2024.

  1. sammybea

    sammybea

    Do some future brokers take the other side of a market execution for a poor fill? Example, lets say I place a market order to buy NQ, and I get filled at 18000.25? But the ask has been at 18000 even and never has moved off of that. Essentially they are taking a quarter for themselves.

    (I know for limits, the order resides at the CME and out of the broker's hand in that situation)
     
  2. Robert Morse

    Robert Morse Sponsor

    My quick response is no. All CME retail orders today trade on the CME through Globex. There are no Futures Dark pools. That said, the CME does have their CME ClearPort for institutional orders. On that system, it is possible for the broker or FCM if they have a trade desk to provide liquidity. https://www.cmegroup.com/clearport.html
     
  3. tony.m

    tony.m

    The villain here is CME not the broker.
     
  4. Robert Morse

    Robert Morse Sponsor

    OK, in what way? You are mad they have a near monopoly and charge a lot for their service?

     
    murray t turtle likes this.
  5. maxinger

    maxinger

    NQ tick size is less than a nanometer!
    You can't see it unless you use a powerful scanning electron microscope.

    Next point to consider :
    How fast/clean is the data feed going to your platform?

    If you trade the regulated exchange, there is less thing to worry about.
     
  6. tony.m

    tony.m

    Yes, near monopoly on almost all US futures.
     
  7. Robert Morse

    Robert Morse Sponsor

    No one like to pay market data and transaction fees. I'm impressed with what the CME offers. A large number of symbols, supported by a stable structure with GREAT customer support. In addition, they are you counter party after settlement. They offer a vast number of free services on their website to promote education on Futures and Options on futures. And, if you want to lower your transaction fees, you can buy or lease a membership. Hard to do all that in a for profit company and do it for less.

     
    Last edited: Apr 1, 2024
  8. tony.m

    tony.m

    I'm all for paying market data and transaction fees but I'm against one company controlling almost all US futures. Competition often serves as a driving force for innovation.
     
    Last edited: Apr 1, 2024
    murray t turtle and Lou Friedman like this.
  9. lx008

    lx008

    Or some researchers from the brokers told clients to buy
    while the big money (like those investment banks) took the other side
     
  10. Good Morning sammybea,

    Yes, they do.

    Brokers do whatever it takes to make money.
     
    #10     Apr 1, 2024