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Even though brokers make money on commissions, it's all too tempting to
gather statistically significant data about their customers. Okay, most of
their customers suck. But what about the remaining two who made enormous
profits the past several years? What do you think your broker is doing
about this discovery? They don't have to know about your brilliant trading
system. All they have to know is when you place your order. In short, the
most successful is always at risk of front-running. This includes
computerized/ECN front running of one form or another.
When you're consistently successful, never trust any one broker. You must
have several accounts, and need to change brokers regularly. Jessie
Livermore did this, and just because "things have changed since then"
doesn't mean human nature has changed since then.
At 10:28 PM 3/7/2002 -0500, Paul Cote wrote:
> >>I believe that "system brokers" (like TradeCenter, Striker...)
> >>don't give the best fills to their customers and that they don't
> >>make money on commissions but on "ripped" fills.
>
>Denis,
>One problem with your theory. Since you specifically named
>Trade Center, I feel compelled to come to their defense.
>I have used them for about 3 years to trade one of my accounts.
>The account is at Refco. My understanding is that they place
>orders on my behalf in my account and Refco gives them a
>share of the commission. I am not saying that someone else in
>the food chain could not be hurting the fills, but I don't see how
>it could be Trade Center. I have no interest in promoting them but
>find the integrity of my Trade Center broker to be a bit refreshing.
>When they or Refco make a mistake, they go to bat and take
>care of it. With the pounds of brokers statements I have accumulated
>I would say there is plenty of money to be made in the commissions.
>
>Regards
>Paul
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