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Let us say it again: If you are not using a direct access broker, stop reading this book and go open an account with a direct access brokernow! |
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Who are the direct access brokers? As of August 2000, there are at least five direct access brokers: |
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The rest of this chapter will give you some insight into how to choose the right direct access broker for you. |
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All of the direct access brokers provide you with a software-based trading system (as opposed to a browser-based system). A software-based system loads the trading software on your hard drive. The only thing you are moving over the Internet connection is a compressed stream of numbers (price quotes, order information, and confirmations). Your machine does all calculations and screen painting. |
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A browser-based system keeps all software in a central server and must send much more information over the Internet. Just sending information for video display takes time and bandwidth. The result is a much slower process. As we have said time and again: time is money. You can't afford the slow speeds of a browser-based system. |
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Virtually all of the "payment for order flow brokers" use a browser-based system. This is one more reason to choose a direct access broker. |
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The electronic trading platforms that are offered by the direct access brokers all come with very effective trading toolstools that can help you make more money. Throughout this book, we have chosen to use sample screen shots from TradeCAST EliteTM v3.2.5, which we rank as the most advanced and most stable electronic trading platform in the industry. |
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