Stock Broker Order Execution Speed - What Is Reasonable
Still searching for a new broker, but I ran across a couple people complaining about their stock broker because of executions, here is one of the complaints:
With several years experience sitting and watching a level 2 screen placing so many thousands of orders I can’t even take an accurate guess. I remember one day I executed over 300 stock trades.
I can tell you in a fast moving market 15 seconds is nothing. I can remember 100’s of trades off the top of my head that I would have loved to have been filled in 15 seconds. I would have jumped out of my seat if I would have had a 15 second fill.
On a average day with a good order system and a calm stock and plenty of people to take the other side of your trade you will get filled in a few seconds. The problem with this is everyone gets used to it and expects the markets will always work like that.
In a fast moving market the brokers taking the other side of the orders take more than 15 seconds to think about if they want to fill the orders they have received or not. I have had to place the same order 5 or 10 times to get a fill because the brokers just keep backing away and there is no one else to trade with.
This is how it works, once the market starts really moving orders come flying in and everyone leaves except for the brokers who have to stay there. So they put up 1000 shares and they get 50 orders for that 1000 shares, they wait 15 seconds then reject all the orders and move their price. They get 50 more orders and they do the same thing again.
They keep doing this until the orders slow down and they think the market might reverse a little. I have watched my orders rejected time after time for several minutes.
And I was using a level 2 screen and placing orders directly to multiple brokers.
What you end up doing is going several levels past the current market and try to find a broker who has not been swamped yet, and put your order in there before everyone else get’s to him. Then I get my order filled and IB comes along later in the middle of the pack and gets rejected along with everyone else.
If you expect to never have a 15 second delay trading the SPY’s then don’t trade because it is going to happen and there is nothing any stock broker can do about it.
Place a few thousand more trades and you will have a few orders that hang out there for a minute or more, then your 15 seconds will start to seem rather fast.
- I had to wait over 15 seconds to cover my short of SPY using SMART while it was blasting upwards and lost hundreds while this security trades hundreds of thousnads per minute I could not get a fill and the customer rep said it was not IB fault. I mean come on with 500 shares and it was that difficult to sell??
With several years experience sitting and watching a level 2 screen placing so many thousands of orders I can’t even take an accurate guess. I remember one day I executed over 300 stock trades.
I can tell you in a fast moving market 15 seconds is nothing. I can remember 100’s of trades off the top of my head that I would have loved to have been filled in 15 seconds. I would have jumped out of my seat if I would have had a 15 second fill.
On a average day with a good order system and a calm stock and plenty of people to take the other side of your trade you will get filled in a few seconds. The problem with this is everyone gets used to it and expects the markets will always work like that.
In a fast moving market the brokers taking the other side of the orders take more than 15 seconds to think about if they want to fill the orders they have received or not. I have had to place the same order 5 or 10 times to get a fill because the brokers just keep backing away and there is no one else to trade with.
This is how it works, once the market starts really moving orders come flying in and everyone leaves except for the brokers who have to stay there. So they put up 1000 shares and they get 50 orders for that 1000 shares, they wait 15 seconds then reject all the orders and move their price. They get 50 more orders and they do the same thing again.
They keep doing this until the orders slow down and they think the market might reverse a little. I have watched my orders rejected time after time for several minutes.
And I was using a level 2 screen and placing orders directly to multiple brokers.
What you end up doing is going several levels past the current market and try to find a broker who has not been swamped yet, and put your order in there before everyone else get’s to him. Then I get my order filled and IB comes along later in the middle of the pack and gets rejected along with everyone else.
If you expect to never have a 15 second delay trading the SPY’s then don’t trade because it is going to happen and there is nothing any stock broker can do about it.
Place a few thousand more trades and you will have a few orders that hang out there for a minute or more, then your 15 seconds will start to seem rather fast.
