Order Routing - 2nd choice

Discussion in 'Retail Brokers' started by PKJR, May 11, 2001.

  1. PKJR


    I am trying to use ISLD as much as I can. However, in certain situations ISLD can be 5-6-10 cents away from the best bid/ask..what would be your second choice if ISLD is not there?

    My current aproach in situation like this is that I will enter either ISLD order (hopeing someone will fill my order) or use BEST (IB BEST- is a long way to get a fill) Is ARCA any good?

  2. def

    def Sponsor

    Any day IB will be offering an ECN only best route. This should improve things. Other traders will have to comment on the particular ECN's.
  3. mjt


    REDI is very liquid. It uses the same order algorithm that ARCA uses. (looks within its own book first, then other ECNs, then Selectnet with market makers.)
  4. In my experience you're often better of taking the slightly worse price on ISLD. You might want to try ARCA as a 2nd, but I've always just preferenced whatever MM looked to have real volume. Often the MM will hold your order since they have the same LII view you do, so you'll end up waiting on SOES or Selectnet fills at the MM's disretion; all this while the market may be moving against you.

    ISLD claims in the TV commercials to do 1/6 of all trades on NASDAQ ...

  5. PKJR


    I know that is hard to generalize but how close is usually REDI as compared to inside ask/bid? and what is usually a respopnse time? (I guess if it goes to MM than you are waiting for MM, right?)

  6. PKJR



    if there is enough potential profits to work with I don't mind doing that. However, if I work with 40-50c giving up 9c to start with it may not be a good idea, I think. I have to also assume that i might have to give up another 5c-8c when exiting position if market will move against me or in case I get 'fast ' market conditions.

    On the other hand, I know I like quick fills so if ISLD is 5c away I will take ISLD if I am strongly convined about potential move. Otherwise, I want to squeze every penny :) from the market.