The investor can decide whom to trade with, choosing among trading firms or one of several ECNs, or electronic communications networks. Now, he says, he can be in and out of a stock twice in the time it took him to fill one order before direct access. The firms' Web sites are the place to start. Once downloaded, the trading software connects directly to the Internet without using a Web browser and is the link that investors will use to tap into these firms. These give a reading of the prices offered to buy and sell a stock by individual trading firms, offering more information than a stock quote that just shows the best price available.
Direct access can be more expensive than conventional online trading.
To take full advantage of it, a simple modem connection won't suffice. Something faster is needed, like a cable modem or DSL link. Internet software needed to power direct access sometimes carries hefty fees for infrequent traders. Commissions at CyBerCorp vary depending on how many trades an investor makes. Tradescape's Tradescape Pro service charges a commission of 1.5 cents a share.