How do online firms still get away with screwing their customers with payment for order flow? It always amazes me that so many people still think their getting a good deal on commission and have no idea where there order is being executed.
as long as you get your order filled with minimal/no slippage, why should you care who/where it is executed? what difference does this have on your reason to enter the trade? its when you start to notice that you are regularly getting slippage - especially if it is frequently for the same amount that you need to be worried. this happened to me with ameritrade/knight trading. goodbye ameritrade.
If your trading through Scottrade or the like that regularly sells your order or internalizes your order, the slippage of a penny here or there on thousands of shares makes a huge difference on the bottom line. Online brokers might as well just say that they have 9.99 trades + 1 or 2 cents, whatever they decide to screw you out of.
Place a limit order then you'll not be screwed out of a penny or two (as you state). And they are obligated to display it. Alternatively, trade through a direct access firm.
If you are trying to make a living as a trader and are trading 1000 share clips, why would you use Scottrade? Use a direct access broker.
One quick clarification. Only a member firm can be paid for order flow. If a firm is not an exchange member they cannot get payment. It is quite common that firms that trumpet they don't accept payment. 1. Can't 2. Execute through someone who does and it is reflected in their net transaction costs 3. Really don't, but it is incredibly rare So first ask yourself "are they an exchange member ? If not who does their execution ? A firm accepting payment still has an obligation to obtain best markets. If you can reasonably demonstrate a trade was not done at best market .. you are owed a trade correction.