Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

rsagi

Brokers Trading Against the Retail Trader

Recommended Posts

Hi All,

 

I am interested in knowing what you think about the claims that a broker with a trading desk may be trading against the retail trader - us...:)

 

Am I avoiding this issue when I use market orders so they cant "find" my stop loss/limit?

 

I currently use Fidelity ATP - how is the platform for daytrading + scalping stocks vs. IB/TS/Mbtrading/MT/Ninja etc? I havent seen any input on the forum here regarding platforms suck as LIGHTSPEED + HYDRA? How do platforms such as REDI compare?

 

I know a guy who scalps using ATP buying 5,000- 8,000 ETF shares and enjoys the platform - any thoughts? (I know he also has an account with IB.) I found it to be really interesting that when he was asked if he uses "smart routing" - he said NO - he found no slippage issues or added value in doing so- again What Are Your Thoughts on This ONE???

 

Also, what about short inventory when it comes to big companies such as Fidelity vs. others? - I only DayTrade ETF's and stocks above $10 - no OTC etc.

 

My apologies that this is a bit of a long post ... ;)

 

Looking forward to your response,

 

Steve

Share this post


Link to post
Share on other sites

I don't see why you would use a platform such as Fidelity ATP if you're day trading and especially scalping. I had Fidelity and I thought their charts were lacking to say the least. And if you're using market orders it's not a matter of being "found" or not, you're setting yourself up for bad fills. If you use limit orders you might miss a few, but those few ticks can add up over the course of say a year.

 

Someone like Brownsfan would probably be able to answer your question about your broker trading against you. I've heard examples of brokers taking the opposite side of your trade in anticipation that you screw up, and eventually blow up. But I'm not sure if that's myth or real.

Share this post


Link to post
Share on other sites

I totally agree about their Charts. I also think that the execution screens - the lack of keyboard based quick execution is just aweful.

 

You criticized the charts - but more importantly, what are your thoughts about the fills by fidelity vs. others?

 

Best,

Steve

Share this post


Link to post
Share on other sites

To be honest, I've never really had a problem. When I traded equities I typically took a long term approach (several weeks) so I wasn't so worried about where I was filled. Now I only use Fidelity for options, and I always enter limit orders. The one time I did use a market order, however, I got a shitty price and I deserved it.

 

But I'm not sure if ATP has an order book style execution platform available, that way you can work your bid like you could on say an ES trade.

Share this post


Link to post
Share on other sites

I c

 

Two more questions.

 

1. Since you do options- do you know a FREE or cost based options "scanner" where I can search for options with the highest premium for covered call purposes? Any interesting tools out there for options volatility/implied volatility etc? I couldn't find one on Fidelity.

 

 

 

2. Who is the broker with the largest/MAX LEVERAGE Intra day for stocks?

 

Best,

Steve

Share this post


Link to post
Share on other sites
Hi All,

 

I am interested in knowing what you think about the claims that a broker with a trading desk may be trading against the retail trader - us...:)

 

Am I avoiding this issue when I use market orders so they cant "find" my stop loss/limit?

 

I currently use Fidelity ATP - how is the platform for daytrading + scalping stocks vs. IB/TS/Mbtrading/MT/Ninja etc? I havent seen any input on the forum here regarding platforms suck as LIGHTSPEED + HYDRA? How do platforms such as REDI compare?

 

I know a guy who scalps using ATP buying 5,000- 8,000 ETF shares and enjoys the platform - any thoughts? (I know he also has an account with IB.) I found it to be really interesting that when he was asked if he uses "smart routing" - he said NO - he found no slippage issues or added value in doing so- again What Are Your Thoughts on This ONE???

 

Also, what about short inventory when it comes to big companies such as Fidelity vs. others? - I only DayTrade ETF's and stocks above $10 - no OTC etc.

 

My apologies that this is a bit of a long post ... ;)

 

Looking forward to your response,

 

Steve

 

Here's an article on brokers trading against you if you are interested.

 

In short, it says the following. Brokers tend to fall into one of the three categories, Market Makers, STP brokers and ECN's.

 

An STP broker passes all it's clients trades directly to liquidity provider and has nothing to gain from it's clients losing and never trades against them. If anything, an STP broker would want to see it's clients succeed and make money so that they keep on trading.

 

ECN brokers simple provide a true market place where all their clients, retail traders, banks, financial institutions can trade against each other on an equal basis - ECN brokers don't care which of their clients wins and which of their clients lose as they're clients are effectively trading against each other.

 

Market Makers (brokers with a dealing desk). These brokers initially take the otherside of their clients trades and in doing so literally make a market and provide liquidity. They could, if they wanted to, hold on to the otherside of their clients trades and profit from their clients losses if they wanted to but they probably don't. Most market makers probably just seek to match their clients trades with the trades of other clients who want to do the opposite and hedge the difference (what they can't match) in the market and seek to profit from the spread.

 

Hope that helps.

Share this post


Link to post
Share on other sites

Normally these tricks only happen in market-maker type of situations [forex--although it is rare to see this now as there are lots of tools to readily determine trad. Regulated environments traded on an exchange I didn't know that could happen. Aren't these ETF/Stocks traded on or through an exchange or are these off-exchange transactions?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • In Italy, I saw many of our brothers from different parts of Africa, sleeping and living in the park, the weather was very cold and its obvious that they were looked down upon. It made me want to cry and several questions overwhelmed my heart.   Is it not better to remain in Africa than to be homeless in this freezing cold weather?   I wish I have all the money in the world to rescue them...   Is this the reason why our skin color is looked down upon?   Do our government officials see this sight when they also travel outside of the country...does it hurt them or pain them like it pained me? By Frank Abah, Quora   Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • ELV Elevance Health stock, watch for an upside gap breakout at https://stockconsultant.com/?ELV
    • ORLY OReilly Automotive stock, nice top of range breakout, from Stocks to Watch at https://stockconsultant.com/?ORLY
    • Date: 28th March 2025.   Market Selloff Deepens as Tariff Concerns Weigh on Investors     Global stock markets extended their losing streak for a third day as concerns over looming US tariffs and an escalating trade war dampened investor sentiment. The flight to safety saw gold prices surge to a record high, underscoring growing risk aversion. Stock Selloff Intensifies The MSCI World Index recorded its longest losing streak in a month, while Asian equities saw their sharpest decline since late February. US and European stock futures also signalled potential weakness, while cryptocurrency markets retreated and bond yields edged lower. Investors are scaling back their exposure ahead of President Donald Trump’s expected announcement of ‘reciprocal tariffs’ on April 2. His latest move to impose a 25% levy on all foreign-made automobiles has sparked fresh concerns over inflation and economic growth, prompting traders to reassess their strategies. Investor Strategies Shift Market experts are adjusting their portfolios in anticipation of heightened volatility. ‘It’s impossible to predict Trump’s next move,’ said Xin-Yao Ng of Aberdeen Investments. ‘Our focus is on companies that are less vulnerable to tariff policies while taking advantage of market dips to find value opportunities.’ Yield Curve Signals Economic Concerns In the bond market, the spread between 30-year and 5-year US Treasury yields widened to its highest level since early 2022. Investors are bracing for potential Federal Reserve rate cuts if economic growth slows further. Long-term Treasury yields hit a one-month peak as inflation risks tied to tariffs spurred demand for higher-yielding assets. Boston Fed President Susan Collins noted that while tariffs may contribute to short-term price increases, their long-term effects remain uncertain. Gold Hits Record High as Safe-Haven Demand Rises Amid market turbulence, gold prices soared 0.7% on Friday, reaching an all-time high of $3,077.60 per ounce. Major banks have raised their price targets for the precious metal, with Goldman Sachs now forecasting gold to hit $3,300 per ounce by year-end. Looking Ahead As investors digest economic data showing US growth acceleration in Q4, attention will turn to Friday’s release of the personal consumption expenditures (PCE) price index—the Federal Reserve’s preferred inflation measure. This data will be critical in shaping expectations for future Fed policy moves. With markets on edge and trade tensions escalating, investors will closely monitor upcoming developments, particularly Trump’s tariff announcement next week, which could further dictate market direction.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Crypto hype is everywhere since it also making new riches as well, i however trade crypto little as compared to other forex trading pairs.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.