That's the most plausible explanation I've heard. Maybe there's something in Texas consumer protection law that prevents them from using this "bait and switch" tactic. Any other Texas based Freetrade customers here? Martin
A friend of mine that lives in Houston did not get the letter, and I have now got 2 private messages from guys saying they got the same letter as I did ( one in Texas , and one not ) So I really have no clue as to why some got it and why some did not. As earlier stated, I was really not happy with them for the last few months, But I use limit orders, and so when the order goes through me when I get my fill, it is not a good thing, but i know many on here use market orders, and don't worry about a penny in price, so the cheap trades are a great benefit, and this is why I posted my letter from them, in letting many of you know of it, hoping that some of you could get the same deal. Plus I just don't think it was fair to give such a short notice to many . Just my 2 cents
It might be that FREETRADE is interested in keeping only those who place mostly limit nonmarketable orders. These orders add liquidity to the market.
I'd expect just the opposite. Freetrade makes money primarily by selling their order flow to MMs, which pays much more than ECN rebates. Presumably the MMs only pay for marketable orders, on which they can legally make money on the spread.
Sounds interesting, I trade 5k (usually 10K) at a whack. Would like more info on ecn liquidity rebates and which brokers offer them. Thanks
For those of you considering another firm, remember ALL firms have their pluses and minuses. I have done business with quite a few firms over the years and was not pleased with most (Merrill, Schwab, Morgan Stanley, JB Oxford, Scottrade, etc. I was a broker (glorified salesman w/7,63 & 24) with a few firms for several years and saw the way executions happen. Reporting improper procedures as a broker or client to the SEC or Nasdaq is at best a joke. The best advice is Caveat Emptor! I currently trade with Rushtrade and have been for over a year. Yes, I have seen some problems but they are quickly corrected because they are a small firm. They have a decent platform w/DART and flexible commission schedules for equities. They just added online options trading to the platform and prices were cut in half vs telephone trading. The best three people there are Bruce, Geoffrey and Jonathan. If you are considering Scotttrade, PLEASE PLEASE rethink that! They are the worlds worst brokerage firm, I caught them and Nite frontrunning NYSE & Amex trades and captured it with a screen capture utility. If you want to see the images let me know. When I confronted them, They denied it and attempted to shift the blame to me. I filed a complaint with the SEC and Scottrade told me to close my account. Even with the screen images proving what they did the SEC did NOTHING! not even a wrist slapping.
my friend you learned first hand how retail brokers make there cash. its called selling order flow. you don't think these brokers keep all that fat overhead going with a lousy 8 buck commission. unless your broker uses autoexecution for small orders doing a market order is hazardous to your health. and even limits with the freetrades of the world are on 3rd markets were the stock has to move threw your prcie for a fill so the market maker still makes money
I live in Houston and have been trading with Freetrade for just over 2 years. I use limit orders only, but I got the standard email for the Izone commissions of $5 per trade. I'm interested in what it is about Steve's (and others) profiles that got them the deal. Steve, would you mind disclosing how often you trade? Rob
Marc: Thanks for the info. I was remembering seeing something like $9/thousand in PfOF during the bubble years.
I trade different amounts, but I usually always get to the 1 dollar trades, and most trades are in the 3000 to 5000. I have talked to 2 other traders who have been with Freetrade as long as me, trade as much as me, and don't have any other memberships with Apex, that did not get the same letter as me, so I have no idea what were the reasons as to who got what letter, the only thing I can think of is that maybe in a month or 2, the ones of us that got the letter will get a new letter saying we will no longer get the Freetrade Prices either. It just seems logical considering their way of treating people. They have a 100 % right to do as they please, but to give such a short notice, and to not waive the fee'ss for transferring funds out , does not show much class if you ask me. I like the idea of us all getting together, to see if we could get a group rate with a Broker, I know from talking to many on here, that just with the Freetrade members of present and past that we should be able to have a large amount of weight behind us. Another thought is that all of the current traders agree not to trade with the new site for the first week ( or longer)... maybe they would agree to grandfather the rest of you in to the old fee's just a thought....