You may not be aware that a professional trading firm can replace your online broker, bringing you bigger better returns at a lower cost to you. Out of convenience, or just lack of resources, we fall to the comfort of trading with an online broker like E-Trade or Ameritrade, but there are actually much better options.
With lower commission, faster execution for a better quality of trade, and more order types to choose from, you owe it to yourself to see how Great Point Capital can replace your online broker.
You are probably not aware that most online brokers sell your orders to the highest bidder, which is also called “payment for order flow”. Payment for order flow, (POF), is a widespread arrangement that has been around for quite some time in US Markets. POF is an arrangement where a third-party firm pays the online brokers to send orders to them, instead of to the open market.
With professional trading firms, you can direct your order however you like. See if your online broker allows you to do any of these:
- Put your order only into dark pools, to minimize market impact
- Split your order among multiple liquidity pools, and move with the bid or offer.
- Try to buy at the midpoint, rather than paying the spread. Buying at the midpoint, rather than buying the offer price, saves you .005/share, or $5 on a 1000-share order.
- Get paid by the exchange by tagging your order as Adding Liquidity Only
- Use IEX’s new Discretionary Peg order, which is designed to predict upcoming changes to the NBBO, protecting investors against structural arbitrage.
Professional trading firms have access to a wider variety of order types that will benefit you when either adding, or removing, liquidity. Trading with the best matching order type with speed and quality execution is the key to higher returns.
Great Point Capital offers the resources and knowledge to utilize the most advantageous order type, netting the best return on your investment.
Have you ever tried to sell a stock short, then your broker declines the order as ‘not available to short’?
Pro firms maintain clearing relationships with firms that have comprehensive lists of easy-to-borrow stocks. Professional firms like Great Point Capital use third-party locate firms to fill in the gaps, and track down stock for you to borrow at reasonable costs.
Great Point Capital offers the widest selection of stocks to trade by partnering with firms that specialize in locating hard-to-borrow names.
Advantages of Pro Trading Firms Over Online Brokers
There is a lengthy list of advantages of working with a professional trading firm over an online broker.
With a professional firm, you immediately gain with lower exchanges fees and commissions, better quality and faster execution of your order, advantageous order type and hard to borrow stocks availability, all resulting in higher returns for you.
If you keep high-balance brokerage accounts to take advantage of opportunities in the market as they arise, or are an active trader trading more than 10k shares per day, you owe it to yourself to look at pro firms like Great Point Capital.
As a FINRA firm, GPC offers you a retail brokerage account with SIPC-insured backing and all the advantages available to professional traders.
Great Point Capital has been serving the trading community since 2001. We are one of the very few firms able to offer access to Takion Software Platform, enhancing your trading performance with fast and high-quality order execution. GPC offers professional and experienced wealth management. Contact us today to speak with one of our knowledgeable trading experts and earn maximum earnings on your trades.