One of my brokers isn't direct-access for options; they send to a subset of the exchanges. (They once told me that for each option, they have a list of which exchanges have historically been the best for it and send the order only to those). I was wondering what happens if I enter an options order at market; do I get no worse than the best bid/offer? For instance, right now the NFLX June 17.5 C is 2.25x2.35, although on PSE (which must not be very interested in dealing with this series today) it's 1.75x2.75, and it'd suck if one had to settle for PSE's prices.
i'll save you a lot of time -- get a new broker who can trade across all exchanges to get you the NBBO otherwise, i'd be happy to personally fill your orders for you over the phone at your current broker's quoted spread...and i bet i can fill them a hell of a lot faster than your broker, too...
They probably send them to whichever exchange gives them the most in kickbacks, er make that "payment for order flow." They are supposed to ensure you get the NBBO but if you don't have quotes from each exchange, how will you monitor their fills? If you are buying a one lot every six months, maybe this is not a big deal but you certainly can't trade with this arrangement.
I agree with the others. At least the broker is up front about it, sorta. I'd take the account elsewhere...to IB or another broker that is more transparent. The savings will more than pay for the inconvenience.