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Showing content with the highest reputation on 07/31/2020 in Posts

  1. 2 points
    @skydragon Thank you for the good suggestion. I have read some good things about them in these forums, but I saw little to no posts mentioning Tradier that were regarding orders filling well when other members’ brokers weren’t. What I’m looking for first and foremost are the brokers that are usually getting fills on our official trades around the time of the alerts. With ToS, I watch level 2 and usually never see my order show up. I’d be ok with that if their wholesalers were getting me filled on some market outside of the exchanges, but they aren’t. Instead, when I watch the price action multiple trades for a couple cents worse than my order get filled, but mine at a better price doesn’t get filled. Unless the price charts and level 2 I’m looking at are inaccurate, then my low cost broker may be costing me more on trades than they’re saving me in fees. The winning trades have tended to be the harder fills that ToS and other members’ “low cost” brokers sometimes aren’t filling as well. Meanwhile, I’m reading posts from over the last several months from members using brokers that really prioritize execution quality such as IB, Schwab and Fidelity, mentioning that they rarely struggle to get filled near the official trade price/time. What’s worse is the losing trades seem to be easier fills because the price drops a lot hours to a couple days later. Not chasing the trades helps keep those to small losers at least, but this is a seemingly subtle effect that can compound into significant return differences for most traders that gravitate towards lowest fee option brokers. Historically, most of the lowest fee brokers have had to make sure they’re maximizing their payment from order flow in order to pay the bills. That bigger payment from order flow has to come from bigger spreads the wholesale market maker keeps. They tend to concentration their order flow routing based on the PFOF the wholesalers gives them instead of the execution quality. The broker retaining more of that PFOF, instead of giving more of it to the trader as price improvement, further degrades their fills. Since their recent class action lawsuit settlements over this, Robinhood and ToS have at least started more evenly spreading their order flow out across their wholesalers a little better so it doesn’t show that they are completely favoring the the ones with highest PFOF. However, I’m petty confident their “smart routing” is now focused on balancing between PFOF for the broker while keeping appearances better to reducing their risks to legal liabilities. I don’t mind the wholesale setup for the brokers that appear using them advantageously for the customer such as Schwab and Fidelity. From what I’ve read, these low cost brokers do the best job of prioritizing the wholesalers that executes best, plus they have an advantage huge internal order flow to execute orders against. These two brokers are able to earn less profit revenue from PFOF because they earn more of their revenue from their wealth management and other businesses than the lowest fee brokers that don’t have as diversified of revenue streams. I don’t know all of these things for certain, they’re my best guesses. My goal is to mitigate my/our disadvantages. I appreciate your insights if you have some to share. 😀
  2. 1 point
    One option is to create a custom 4 leg position. Another (simpler) is to close the Jul31 strangle first and then open Aug07 strangle.
  3. 1 point
    At least they seem to share a part with their clients. Therefore it has happend to me to see sometime a negative commission which means I was paid for placing my order. 😊
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