Pro Trading Firm Has Broad Order Type Availability

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.

  

Directed Orders

 

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.  

 

Short Stocks

 

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.

 

Pro Traders Give Quality Execution Over Online Brokers

Did you know that you can have a professional trading firm, one that specializes in complex and sophisticated trades, manage your retail investment account instead of an online broker?  People often resort to signing up with E-trade, Ameritrade or any other online broker out of convenience, and lack of a full understanding of the better alternatives.  

 

Not only are the fees and commissions usually much less with a pro trading firm, your level of service regarding experienced trading results in higher returns and more money in your pocket.  For a fraction of the cost you’re paying to your online broker, you owe it to yourself to find out how a professional trading firm can provide better service, higher returns, at lower costs to you.  

 

There is a significant difference between poor execution and quality execution when it comes to how your order is routed and executed, and the majority of online stock brokers do not know the difference.  

 

Professional Software

 

Active traders need to see real-time, true quotes, full depth of quotes, information about their open orders and positions, and filter tools to search for the best opportunities.  Utilizing professional software like Takion gives professional traders all these features right at their fingertips, and makes an enormous difference in the quality execution of your order.

 

The Takion trading platform is built for speed, and it won’t choke when the market gets busy.  Takion offers fully customizable windows and keys that allow the pro trader to set up their trading software exactly how they like it.  

 

Great Point Capital is one of the few firms with access to Takion, the professional trading platform that gives traders the competitive edge to conduct the most advantageous trades for your order.   

 

Quick Execution

 

You can miss trades when clicking through order entry screens trying to take advantage of fast-moving markets.  Paying a higher price for the stock or missing a great trade because of a delay in getting the order into the market can cost you several times what you think you’re saving with the low commission from an online broker.

 

If you end up paying $65.10 instead of $65.05 for 1000 shares of stock, that’s $50 out of your pocket!  That really adds up if you do it a few times a month.  Professional software like Takion is customizable to where one keystroke enters your order and routes it directly to the market, so you can jump on your price when you see it in the market.

 

The speed with which professional trading firms like Great Point Capital can route your orders nets you bigger returns with quality execution of your orders.

 

Great Point Capital is one of the very few firms utilizing the Takion Software Platform, enhancing the quality of trades with high-quality and quick order execution.  We offer experienced and professional account and wealth management, including management of retail accounts. Contact us today to learn how a professional trading firm can replace your online broker and provide bigger returns with less cost to you.  

Why Prop Traders Need Control of Orders

In this complex and often predatory market environment, it is of the utmost importance to have control of your orders.  With Payment for Order Flow arrangements, and Maker-Taker allowing multiple market participants to piggyback off your order and capture profits that could be yours, you need to know how to survive and thrive in the current market structure.

For the retail customers that are trading just a few times per month, the amounts made from front running your order is negligible.  But to the HFT firms doing this with thousands of accounts every day it adds up to millions of dollars.  

To the trader with larger accounts trading 50,000+ shares per month, these amounts will add up very quickly.

You need to have greater control over your orders so that you capture extra profit per trade, rather than have your orders sold to someone else.

How to Take Control of Your Orders

The availability of order types that allow you to go directly to dark pools, combined with an increased knowledge of the market, is necessary to enhance your order options and trading experience.  It is also necessary to have experience and resources to place orders at the midpoint of the NBBO, and to capture rebates when adding liquidity to the market.  

Great Point Capital has the resources and the availability of order types, combined with an increased knowledge of the market to maximize your trading returns.  

Rather than selling your orders, we help you to direct your orders to the venue that gives you the best outcome.

Great Point Capital Provides the Tools for Trading Success

Great Point Capital offers modern technology with Takion Software and IT support, beneficial order types, capital, stock loans, flexibility and payouts with benefits.

Technology

Great Point Capital utilizes Takion Software, the most modern trading platform that meets the needs of active traders.  Takion is selective in providing their software to only experienced trading firms.  We employ skilled traders to take full advantage of all capabilities that Takion has to offer.  

Order Type Availability

We offer access to the most beneficial order types, including order types to go directly to dark pools, to place orders at the midpoint of the NBBO, and capture rebates when adding liquidity.

Capital

Great Point Capital gives you the resources to benefit the most from your trading, providing one of the largest capital bases among prop trading firms.  We give you additional leverage that you would not otherwise have, and provide excellent opportunities to earn maximum returns on your trades, without being limited to your personal resources.   

Flexible Location

You can have the flexibility to trade remotely with internet access, or in our offices in Chicago or Austin.  You can trade by hand or develop an automated strategy, the choice is yours.

Stock Loan Accessibility

Great Point Capital partners with firms that specialize in finding difficult-to-borrow names, giving you a wide selection of stocks to trade.

Benefits and Payouts

Registered prop traders with Great Point Capital have access to our group health plan, and enjoy aggressive payouts.

With the multitude of choices available to traders today for routing your orders, it is challenging to know exactly how to take control of your orders.  Great Point Capital has the experience, , capital, technology, and the order types to provide the most beneficial environment for you to take control of your orders and net bigger returns.   

Great Point Capital has been serving the trading community since 2001.  Our 100+ prop traders actively trade the firm’s capital, specializing in equities and equity options.  We are one of the select few firms that can offer access to Takion Software, enhancing your trading performance.  For control of your orders and to earn to your maximum potential, contact us today to speak with one of our knowledgeable staff.  

 

 

 

Who Profits on Your Stock Orders?

Third party firms that are paying for orders under a Payment for Order Flow (POF) agreement do not enter into those arrangements to lose money, they are making money as well as the broker they are paying.  Reg NMS says that your broker needs to provide you with the best execution available at the time.  So how can two firms, your broker and the third-party firm paying for POF, manage to profit from your order, while still giving you to best possible price?

Maker Taker

One instance where two firms can profit from your order is when they are getting paid for the liquidity you provide.  If your order is not marketable immediately, they send it to the venue that will pay the most for adding liquidity.

For example, providing liquidity on ARCA for a 1000-share order results in a rebate of about $3.00 that goes to the POF firm who paid your broker for the order.

HFT

 

The other instance is that the POF firm used your order as part of a profitable trading strategy.

For instance, in heavily traded stocks, a good amount of trading is done at the midpoint of the NBBO (National Best Bid and Offer).  

If the market is 30.24×30.25, and you send your order to buy 1000 shares at 30.25, the POF firm sells you the stock at 30.25 (usually 30.24999, which allows them to jump in front of everyone at 30.25), then they sweep through the dark pools and midpoints on exchanges and buy the stock at 30.245.  This nets a profit of about .005/share, or $5.00, on your order.

The POF firm may also be aware that the market is just about ready to turn and go to 30.23×30.24. They know this through their sophisticated predictive algorithms based on trades and changes in quote sizes, combined with the direct market feeds that are faster than the feeds creating the NBBO.

The faster direct feeds might show the market is already at 30.23×30.24, but the NBBO won’t show that for few milliseconds.  This makes it easier – they can give you the “best execution” available on the current official source, the NBBO, at 30.25, then turn around and immediately buy the stock back at 30.24, which became the true offer in the market.

It is vitally important for traders to have control of their orders.  The amounts made from these orders is negligible for the retail customer that is only trading a couple times per month, but to the HFT firm doing this across thousands of accounts every day it adds up to millions of dollars.  

Contact Great Point Capital today to take control of your orders and seize additional profits per trade.  We have the knowledge of the market, the experience and resources to assist you in routing your orders so that it is most profitable to you.  

If you need a broker with capital, and access to orders including those in dark pools, contact us today to see how we can work together to realize your true trading potential.  

Learn more about Great Point Capital today.  Our 100+ prop traders actively trade the firm’s capital, increasing their leverage and returns.   We are one of the select few firms able to offer access to Takion Software Platform, enhancing your trading performance.  To take control of your orders and to capture additional profits, contact Great Point Capital today.

 

How to Maximize Your Profit on Your Stock Orders

Great Point Capital has discussed Payment for Order Flow (POF) and how High Frequency Trading (HFT) firms profit on your trades.   We’ve shared how Maker-Taker affects the way that market participants execute trades.  Now we would like to show you what you can do to improve your trading returns within this complex and often predatory environment.

Order Routing Options Limited with Traditional Broker

If you are currently trading through a traditional retail broker, you probably have a limited number of ways for routing your order, if any.     Routing your order is typically limited to a “smart” route, or perhaps a preference for NSDQ or ARCA.  Some of the more advanced firms might let you choose IEX.  These limited choices will not help much, as you do not see the pricing difference between the selections, and you cannot change them easily if something changes in the market.

Traders use “smart” routes, which are simply computerized algorithms that aid traders in buying or selling stock, with the main goal of making the search for liquidity easier.  Smart routes are not a trading system, but are instead a set of instructions that are based on certain conditions set by the trader, and are customized by the trader or pre-set by the broker or software.  Thus, they are limited by the broker, or the software.  In addition to limitation on orders, a trader’s ability to post bids and offers through ECNs is also limited to which venues your broker has subscriptions to use.  

Most retail brokers have agreements in place with third party firms where they get paid for sending orders to them for execution.  This is the obviously the “smart” route if it is one of your choices.  In the past, brokers had networks of people who would work together to execute your order.  Your commission paid for that network and the cost to execute your order.  Today, executing your order is no longer an expense for your broker, but has become a profit center.  

Who Profits on Your Order?

The third-party firms that are paying for orders under a Payment for Order Flow arrangement obviously aren’t losing money on the transactions either, they are making money as well as the broker.  Reg NMS states that your broker has to to provide you with the best execution available at the time.  So how is it that two firms manage to profit from your order, while still giving you to best possible price?

To take control of your orders and recognize additional profits per trade, contact Great Point Capital today.  We have the experience, and the resources to help you route your orders so that it is most beneficial to you.  

Great Point Capital has been serving the trading community for almost two decades.  Our 100+ prop traders actively trade the firm’s capital, specializing in equities and equity options.  We are one of the very few firms able to offer access to Takion Software Platform, enhancing your trading performance.  For control of your orders and to capture additional profits, contact Great Point Capital today.

Maker-Taker Influences Order Routing and Price Discovery

Reputable online brokers and traders all agree, the Maker-Taker pricing model distorts the market and alters the way stock orders are transacted by market participants.  Maker-Taker is a pricing model existing on most exchanges, encouraging liquidity in their venue.  

Most stock exchanges, although not all, and all are not the same, will give a small rebate to traders and investors upon execution of their limit order when they are providing liquidity to the market, which is the maker part of Maker-Taker.   These liquidity rebates drive the Maker-Taker model.  

 

Conversely, exchanges will charge a modest fee to the market takers, those that take liquidity by entering either market orders or marketable limit orders.  Maker-Taker is a hot topic among traders and brokers, many oppose the practice as brokers will use the exchanges that give the most advantageous rebates instead of committing to the best execution, which createis a conflict of interest.

 

A rebate reward system combined with an already predatory environment including high frequency trading algorithms overtaking online equity trading in all venues across the market.  High frequency trading (HFT) firms use very sophisticated and specific algorithms designed to seize as many liquidity rebates as possible, regardless of the impact this may have on the market or the National Best Bid Offer (NBBO).

 

Maker-Taker And Price Discovery

 

Traders and brokers have been calling for an end to the Maker-Taker system, claiming that it  most certainly influences order-routing decisions, and distorts price discovery.  While different exchanges having different fee schedules, this gives brokers incentive to route their orders so that it is most advantageous to them, instead of giving ‘best execution’ to their client.

An example of the Maker-Taker model occurs when an exchange pays a market maker .002 per share to provide liquidity, and charges the market taker .003 per share, leaving the exchange to keep .001.  With millions of shares traded on a daily basis by HFT firms, even the small rebates given to market makers add up significantly to billions of dollars simply by utilizing computerized algorithms based on their trading strategies and buildt to elicit the most rebates.

 

Exchanges use maker-taker like marketing, drawing executions to their marketplace. If you can lure liquidity-adding orders with big rebates for that liquidity, the other side of the trade has to come to you, which increases volume, and profits, for the exchange. Of course, the opposite is also true – those taking liquidity have price sensitivity as well, and try to go to the exchange with the lowest cost to remove liquidity.

 

This is why we have seen nearly all exchanges create separate exchanges that differ only in the pricing model.  Nasdaq owns PSX and BSX exchanges, which have “inverted” pricing models that pay rebates to remove liquidity, while those adding liquidity pay small fees. EDGE does the same with EDGA, BATS the same with BATY.

 

Those that oppose the Maker-Taker system believe that the public view of the current bid/offer price is not accurate due to the rebates and discounts.  HFT firms will buy and sell at the same price, just to exploit the rebates.  This activity can mask the true price discovery of stock assets.  

 

Great Point Capital has over 100+ prop traders actively trading the firm’s capital, specializing in equities and equity options.  We are headquartered in Chicago with a location in Austin, TX.  Contact Great Point Capital LLC today, in either our Chicago Office, or Austin Office, to learn  how we can successfully trade together generating high performance results.  We are one of the elite few able to offer access to Takion Software, enhancing your online trading performance.

 

Maker-Taker Influences Order Types

 

Each exchange has their own type of orders, with each order type carrying their own fee schedule.  Nasdaq recently developed a Retail Post Only Order, which was designed for the sole purpose of assisting retail brokers in avoiding access fees.  This particular order type would have allowed for it to cancel for any reason, rather that fill with an adjusted price.

 

For instance, if a retail broker receives your order to buy at 10.25, and the market is 10.25×10.26, they send it to the exchange to add liquidity, earning a rebate.  Now suppose that just as it sends the order, the market changes to 10.24×10.25.  Your order just became marketable, so instead of earning a rebate for adding liquidity, your broker will now have to pay to remove liquidity!

 

The Retail Post Only Order protects this from happening by canceling the order if it becomes marketable and would remove liquidity. That order would then likely be re-routed back to the third party that pays for the broker’s order flow to be filled, instead of to the exchange.

 

Proponents argue that this choice is good for competition that is good for markets.  Opposition to these types of orders claim that these are one- sided order types benefit only the select few while distorting market pricing, which is never good for investors.

Nasdaq withdrew their request for this order type in January of this year, under much scrutiny.  

Add-Liquidity Orders (ALO)

 

An ALO order is an Add Liquidity Only order, and is executed only if it adds liquidity as a market maker.  The goal behind these order types is once again to assist the user in controlling their costs, and reducing fees.   

 

They are used, however, to game the system, as entering a marketable ALO order forces the other side, which should have gotten a liquidity rebate, to now be a Taker and incur a cost.  This happens with non-display orders that fall between the NBBO.  If the market is at 10.14×10.16, and I have a hidden order to sell at 10.15 on ARCA, if an ALO order comes in to buy at 10.15, I would become the taker, even though I was there first.  

 

If my order was visible (NBBO at 10.14×10.15), the ALO order wouldn’t cross at all, it would just sit on that bid at 10.14, meaning a trade that would otherwise occur and aid price discovery doesn’t happen simply due to the maker-taker pricing model.

 

Great Point Capital has vast knowledge of the market structure and order types, including  available order types to go directly to dark pools, to place orders at the midpoint of the NBBO, or to capture rebates by adding liquidity.  We combine this knowledge with valuable tools like the Takion software platform, to let you direct orders to the venue giving the best outcome.

Great Point Capital has over 100+ prop traders actively trading the firm’s capital, specializing in equities and equity options.  We are headquartered in Chicago with a location in Austin, TX.  Contact Great Point Capital LLC today, in either our Chicago Office, or Austin Office, to learn  how we can successfully trade together generating high performance results.  We are one of the elite few able to offer access to Takion Software, enhancing your online trading performance.