I have been using preferred since last summer. I generally used their 7.75 trade and occasionally the autotrade if the situation warranted it. Since March I have noticed that the 7.75 executions are terrible. Long waits for a fill are common. If you put in a limit order your order will sit unfilled or the price will move off a penny or two. I always end up having to adjust my limit a few times to get filled. Put in a market order and bam you are screwed. I understand its a cheaper price(775) but it was never this bad. I have called them several times and they dont deny that it is worse, but they dont seem to care at all. The autotrade executions are excellent.( I just dont like the way they seem to be forcing me into using it) I am working on dumping preferred trade because I just dont like getting screwed. If anyone can recommend a similar type order system that at least offers good service and respects their customers please include the name. Thanks RC
ron2368 I, too, used to be a Preferred Trade account holder. Then I started finding out about Interactive Brokers. At first, I thought there must be some kind of a "catch". I found out that IB is (in my opinion) the BEST. Beats Preferred hands down. There's really no comparison. Preferred's software is about as simple as it gets. IB's takes some getting used to. After a while though, it's really easy. For the most part, the people at IB are helpful/respectful when you contact them. Hope this helps you in making your decision. BSAM
ron2368: I recently left Preferred for I.B. As you probably know $7.75 trades are routed to NITE or HRZG (for payment for order flow) so if they are not in or near the inside you won't get a fill. Besides, in most cases you will find an ECN with a better price. I used to go the $7.75 route only when NITE or HRZG appeared on L2 as the inside bid or ask and had plenty of size showing.
I thought their autotrade order was an autoexecution agreement with Nite and Herzog whereby the order would be filled at the NBBO regardless of where these MM's were quoting?!
I've had the same problem with PreferredTrade. I still have an account with them, but have also opened an account with OptionsXpress. I use Preferred for my long term investing, and OptionsXpress for my more speculative strategies using options. I've had good results so far...no complaints. Check em out