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4 votes

Nasdaq trading under the scenes: market makers, ECNs, brokers. Who buys from and sells to whom?

First, have a look at Market Microstructure in Practice (Laruelle et L) to have generic explanations about all this. In short: Equity markets are fragmented: it means to buy or sell shares, you ...
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3 votes

Whats the need of Executing brokers if Prime brokers are the protagonist?

A prime broker is like a General Practitioner doctor. Executing Broker is like a specialist. If you needed brain surgery, you would not have your GP do it. Executing brokers specialize in specific ...
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  • 434
2 votes

Whats the need of Executing brokers if Prime brokers are the protagonist?

In other words, is it too costly for PB to be an EB as well? Answering your second question first, PB's are EB's; they just provide an entire suite of products and services beyond just trade ...
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  • 3,680
1 vote

How much do brokerage apps cost versus traditional brokerages?

Here is a detailed document from a SEC Lawsuit against Robinhood detailing Robinhood's execution practices: Some choice quotes: "For most orders of more than 100 shares, the analysis concluded ...
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1 vote

How can one get broker order data?

When an exchange (or ECN) receives an order, there is no identifier of the buyer or seller. Therefore the only place that this is available is at the broker themselves. No broker would be willing to ...
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  • 1,252
1 vote
Accepted

Order routing: correlation of having same exchange for buy and sell

It depends on the smart order router that you've chosen. Generally no. However in your example it appears that you are referring to passive execution on both ends, and there are smart order routers ...
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  • 5,062
1 vote

Broker that allows algo trading, no pdt rule and a low minimum deposit

PDT (Pattern Day Trader) is an SEC rule. You will not find a US retail broker anywhere that allows you to surpass it. If you were a professional with the proper licenses and had an account at a ...
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  • 3,680
1 vote

How brokers' spread costs work?

The spread, or Bid-Ask spread indicates the difference between the prices which market participants are willing to sell at (Ask) and willing to buy at (Bid). If you are selling without any specific ...
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  • 458
1 vote

how to calculate/retrieve the number of sell orders (and buys orders as well) to detect iceberg orders

A short answer is to use reliable market data and a trading platform which doesn't wrap precious details in the market data into candles. Your algorithm is a reasonable, but is an approximation. A ...
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  • 952
1 vote
Accepted

How do I know what my portfolio weight constraints are given to me by my broker?

In the US, Prime Brokers will generally follow either Reg T rules or Portfolio Margining rules. For Portfolio Margining accounts, assuming the account is somewhat diversified (not everything in one ...
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  • 9,357
1 vote

CFD Broker that only charges for earnings

that only charges for my profits - do you understand how CFDs work? For the sake of simplicity, there are four aspects to CFD trading: (1) bid/offer spread - differs on whether you're doing OTC ...
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