Finding a Broker

"Hey Joe! I need help finding a broker. I find that discount commission rates are almost the same.
So how do I choose? "

Commission is certainly not the most important factor when choosing a broker. The most important thing when choosing a brokerage firm is the slippage per trade, the difference between the stop order price and execution price.

Based on a study I saw a few years back, ten orders with five commission houses. All orders were priced in the same market at the same price, before the market opened. The difference in deviations from best to worst was over $ 800. Skidding a year for Rosenthal Collins commercial one and two contracts of the S & P was more than $ 20,000 per account. The floor broker for the majority of those transactions was Mario De Bartolo. All fills were supposedly legal. An order for 15 contracts was to sell at 45. The market took more than two minutes to fall in steps of one tick to make money even at 00, before an up tick. All 15 contracts were incredibly filled to 00. Slip on the order was $ 3,375. A week later, another order was slipped over $ 2,000, then all accounts were closed. Coffee was once the daily high and low in the opening range. I was full stop on my buy and sell stop at the high and low of the day, 360 points three times. Legalized theft. The broker can both sides of the orders have been taken. New York markets are notorious for their slippage, so the Chicago pork belly market.

Each broker is to prevent on the orders of his client such slippage is not worth as a broker. There are brokers who closely the types of fill to get the floor to their customers. If the fillings are bad, they will dump the bad floor broker and another. Bad floor brokers can be punished that way. They lose the business. A good broker will fight for his / her clients. Therefore we use the broker that we are currently using. If you want a reference, let me know. I'll be glad to give it.

Joe Ross

Trading Educators Inc.

About Joe Ross:
Joe Ross has been trading for over 47 years, and is a well known Master Trader. He has survived the ups and downs of the markets because of his adaptable trading style, low-risk approach that produces consistent profits.

Joe is the creator of the Ross hook, and has set new standards for low-risk trading set with his concept of "The Law of Charts?." Joe was a private trader for most of his life. In the middle of the 80 to shift his focus and he decided to share his knowledge. After his recovery, he founded Trading Educators in 1988 to aspiring traders how to learn. profits using his trading approach he has 12 major books on trading written. All of them have become classics and have been translated into many different languages.

Joe holds a Bachelor of Science degree in Business Administration from the University of California at Los Angeles. He did his Masters work in Computer Sciences at the George Washington University extension in Norfolk, VA. Joe still tutors, teaches, writes, and trades regularly. Joe is still an active and integral part of Trading Educators.