Ok, you REALLY dont understand how this works, do you? There is one guy who gets a couple of million 1:100 RR trades per day and then there is another guy (you and average joe) who thinks that is a good thing because free trading. It's like going to the casino because free drinks. Markets should be competitive. In this case you have four companies who access 90% of the retail flow. None of them had a single losing day last two years. Use your brain, man!
Markets are competitive as there are numerous participants presenting quotes. I have not seen order flow firms making quotes outside of the best nbbo bid and ask.
Furthermore there was no such thing as penny spreads in the old days except for penny stocks. Today there are numerous stock s traded with a penny spread. I traded snap today a $60 stock which had a penny spread. Show me how you can do better than that . I gave you my numbers in an example but you ignored them I am not about to give 50k in commissions on a 100k in capital. That is a 50% charge to capital. That is a pretty good reason why 95% of day traders are losers. 50 round trips per days at $2 ticket is $200 per day,1k per week and 50k per year. The lack of response shows the depth of your understanding of capital management. If you think you can do better away from a payment for order flow firm go to IB and pay a commission. IB offers both scenarios commission free trading and commission trading
You didn't respond to my numbers or to my comment about IB. Nobody can learn anything from your responses. Let's hear your workaround for active day traders.
Nobody cares about your numbers as long as you don't understand the underlying functionality of Pfof and subpenny pricing... My workaround? Get direct access and route your passive orders to venues that pay rebates. However, my definition of trader might be a bit different. The average 20k account who gambles in and out of stocks on his mobile should just stick to the "free" brokers. It doesn't matter where they lose their money, they lose it anyways. Better to feed a couple of marketing associates and key account managers at a neo broker with their commissions. If you're serious about the business and trade 500k/day average, you'll have various brokerages that would love to handle your business. IB is not for active traders. It's for CTAs that need the compliance tools to handle multiple accounts or suckers that don't do enough volume to work with a specialist
My numbers speak to the reality. To say nobody cares about reality only is a s showcase for your failure to produce any numbers in your response. What kind of specialist are you talking about. In the past I had colleagues who were MOC experts who dealt with floor brokers paid seemingly high commissions to get information on order flow and made more money in the last 20 minutes of trading in a day than likely you make in a year
Ah... so you know someone who knows something and because I don't believe your dreamed up numbers they gonna make more money in 20min than I do in a year.
You have not been able to dispute my numbers showing ticket charges of $2 per ticket would result in a capital loss of 50%. Assume 100 tickets per days at $2/ticket on 100k Account. That would be an additional 50k per year with a ticket charge or 50% charge to capital. There is no way that I believe I am going to save that 50k without order flow. I trade stocks with.01to .03 spreads. Unfortunately you have proven yourself to being mathematically challenged, or just plain ego driven unable to admit that you are wrong. Now in addition you are showing that you are unfamiliar how moc orders are entered by prop shop traders. If you were familiar you would have countered by saying that you are wrong about one year but have said profits from a few successful moc orders could easily exceed my profits for the year.
Now imagine you cut down your ticket charge by routing your limit orders to venues that actually pay you to do so plus your entries are 1 ct better on average, because the internalizer doesn't frontrun every single one of your orders... Stop talking about math when you don't know anything about market structure