While these commercials are fairly creative, they certainly give a false impression on what online trading is really like. More so, they offer a more difficult environment for the active trader as well. While the web based online brokers have been offering better tools as of late, they still are at a disadvantage to the direct access online brokers such as MB Trading. I see many times a trader s desire to switch to the online web based broker because of lower commissions. While lower commissions are great, they aren t always backed by the best of services.
Most online brokers receive a rebate for order flow sent to a respective market maker.
This means that the market maker can execute the order or trade against it and send you confirmation of your order sometimes in minutes. If you use a direct access online broker, you are able to participate directly with the ECNs and Market Makers at the best prices. Furthermore, you are able to pick which Market Maker or ECN you wish to execute against instead of leaving it up to the web broker and their discretion. The flip side of self directed online trading is that you will need to understand what route works best with what situation. While this is scary at first, the progression of this skill will make you a much more efficient trader in the long run.