E*Trade SB --- dealer confirm

Hi,

I found out that the mob at E*Trade has recently changed my SB account from the automatic system to dealer confirm, causing a big delay in the execution of trades (talking about ~30-40sec). They were very unhelpful at the hotline just blaming the volatile market, but clearly they can't put all their customers on dealer confirm because of the volatility. Quick trades have become next to impossible, 90+% of the trades get rejected (and obviously some of those moving against you go through... )

Has any of you made similar experiences, and how long does it take until they put you on auto trade again?

Cheers,
Gunther

gunther1 said:

Hi,

I found out that the mob at E*Trade has recently changed my SB account from the automatic system to dealer confirm, causing a big delay in the execution of trades (talking about ~30-40sec). They were very unhelpful at the hotline just blaming the volatile market, but clearly they can't put all their customers on dealer confirm because of the volatility. Quick trades have become next to impossible, 90+% of the trades get rejected (and obviously some of those moving against you go through... )

Has any of you made similar experiences, and how long does it take until they put you on auto trade again?

Cheers,
Gunther

Click to expand...

Yeah is usual if they provide a fix spread in the instruments you are trading

Banks tend to wide and narrow the spreads nowadays

Hi Magos, are you saying that this is actually normal?

That’s normal in the current situation, since the FSA and SEC gives the right to the trading firms/ banks to requite because they can argue that the prices moved/ that they couldn’t hedge the trade/ currency spiked (wide spread between bid and offer), all sorts of excuses. In derivatives like FOREX, CFD’s, spread betting, etc. they are the market makers (THEY HAVE POWER LoL)

Just be careful with the following (they are going to give slippage) markets are extreme volatile

Sell Stops
Buy Stops
Stop Losses

Cheerios
Magos

Magos said:

That’s normal in the current situation, since the FSA and SEC gives the right to the trading firms/ banks to requite because they can argue that the prices moved/ that they couldn’t hedge the trade/ currency spiked (wide spread between bid and offer), all sorts of excuses. In derivatives like FOREX, CFD’s, spread betting, etc. they are the market makers (THEY HAVE POWER LoL)

Just be careful with the following (they are going to give slippage) markets are extreme volatile

Sell Stops
Buy Stops
Stop Losses

Cheerios
Magos

Click to expand...

Well, one can ask if they are following the EU MiFID financial directive on "Best execution". Apparently they are not, as, they are flagging certain clients, restricting them from trading on equal terms with the rest of the client base. E-trade SB unit is a white label of London Capital group (Capitalspreads). Capitalspreads have agreed to follow the MiFID financial directives. Until we get some strict regulation and court praxis on this issue, this kind of dubious practice can continue unhindered by the SB companies.

gunther1 said:

Hi,

I found out that the mob at E*Trade has recently changed my SB account from the automatic system to dealer confirm, causing a big delay in the execution of trades (talking about ~30-40sec). They were very unhelpful at the hotline just blaming the volatile market, but clearly they can't put all their customers on dealer confirm because of the volatility. Quick trades have become next to impossible, 90+% of the trades get rejected (and obviously some of those moving against you go through... )

Has any of you made similar experiences, and how long does it take until they put you on auto trade again?

Cheers,
Gunther

Click to expand...

It is impossible to trade under these conditions. This game is hard enough anyway. I suggest that you withdraw your funds. Leave some money in the account, test a few small trades to see if they change your client status in the weeks to come. Start looking for another SB that will give you a better deal. It is my experience that it is very hard to get your client status reversed. I also suggest that if you still are, after a few weeks referred to a dealer, send them an email or call them up again. Be polite and say upfront that you are not interested in continuing trading with them under these trading conditions. It is very important to know where you stand in this regard.

Are there any quick traders/scalpers around that have found a fair SB company, i.e. that accepts such trades without putting customers on dealer confirm? Cheers!

gunther1 said:

Are there any quick traders/scalpers around that have found a fair SB company, i.e. that accepts such trades without putting customers on dealer confirm? Cheers!

Click to expand...

You must test the ground on a personal level with a few SB companies, to see how well they perform in this extremely volatile market.

gle101 said:

Well, one can ask if they are following the EU MiFID financial directive on "Best execution". Apparently they are not, as, they are flagging certain clients, restricting them from trading on equal terms with the rest of the client base. E-trade SB unit is a white label of London Capital group (Capitalspreads). Capitalspreads have agreed to follow the MiFID financial directives. Until we get some strict regulation and court praxis on this issue, this kind of dubious practice can continue unhindered by the SB companies.

Click to expand...

If you are trying to change the legislation you will for sure go wrong!

Try trade for your clients first, accept a price and what if you cannot get them that! LoL

Lets play the fsa game
Best execution: http://www.fsa.gov.uk/pubs/discussion/DP5.pdf