Future Broker
Right now I am using 2 different future brokers to trade with, and I am pretty happy with both of them.
Of course today was another great day for scale trading cotton, so that might have something to do with my opinion of my broker.
I had a limit sell order in for December cotton at 53.60 and I got filled at 53.65
I purchased this contract at the end of July at 51.60 so I made just over $1000.
The fill on my sell order was .05 higher than my limit order so I made an extra $25.
The reason this make me think of my futures broker is that today someone asked me if I thought that their broker was giving them bad fills and keeping the extra money.
When you enter limit orders this is extremely difficult for them to do, and probably does not happen that much with futures trading. I would think that if a broker was going to do something like this they would certainly go after the extra money that I was not expecting.
One way to check is to open two accounts with different brokers like I have done, and compare your fills.
In cotton from time to time I will get fills a little higher than my sell orders and buys a little lower.
I have also placed the identical orders with both brokers and so far they have both come back the same.
If you did have one broker where you never ever got an order that was filled at a better price I would get a little suspicious since it is not that rare of an event. It usually happens when like today there is a big move in price which means that there are times when the price is changing rapidly and it just goes past your order.
Not counting opening gaps where everyone with limit order away from the opening price gets a better fill, this is another thing that happens from time to time.
I think the guy asking me the question was used to trading on the New York Stock Exchange, where the brokers do take your money on a regular basis. Fortunately most future brokers don’t work this way.
Of course today was another great day for scale trading cotton, so that might have something to do with my opinion of my broker.
I had a limit sell order in for December cotton at 53.60 and I got filled at 53.65
I purchased this contract at the end of July at 51.60 so I made just over $1000.
The fill on my sell order was .05 higher than my limit order so I made an extra $25.
The reason this make me think of my futures broker is that today someone asked me if I thought that their broker was giving them bad fills and keeping the extra money.
When you enter limit orders this is extremely difficult for them to do, and probably does not happen that much with futures trading. I would think that if a broker was going to do something like this they would certainly go after the extra money that I was not expecting.
One way to check is to open two accounts with different brokers like I have done, and compare your fills.
In cotton from time to time I will get fills a little higher than my sell orders and buys a little lower.
I have also placed the identical orders with both brokers and so far they have both come back the same.
If you did have one broker where you never ever got an order that was filled at a better price I would get a little suspicious since it is not that rare of an event. It usually happens when like today there is a big move in price which means that there are times when the price is changing rapidly and it just goes past your order.
Not counting opening gaps where everyone with limit order away from the opening price gets a better fill, this is another thing that happens from time to time.
I think the guy asking me the question was used to trading on the New York Stock Exchange, where the brokers do take your money on a regular basis. Fortunately most future brokers don’t work this way.
