Which Broker Doesn't Time Out?

PeteC · #1 (**permalink**) 11-08-08, 11:34 AM

I have two brokerage accounts. TDAmeritrade and ETrade. With the TDAmertrade account I can set up an order and then wait for the exact right time to place the order. If I try that with the Etrade account, I have a limited amount of time to place the order or else it will time out.

As an example of the problem, I was sure that during Obama's first press conference the market would go down. On my TDAmeritrade account I prepared an order to buy 400 SPY puts at the market and on my ETrade account I prepared an order to buy 190 of the same puts.

When I thought the time was right I clicked the "submit" button on both accounts. TDAmeritrade got me the puts for $3.80 each. ETrade said my order timed out and I would have to start over.

I didn't have time to mess around with the ETrade account but I prepared an order to sell the options in the TDAmeritrade account. Less than 15 minutes later I clicked the submit order for the TDAmertrade account and sold the options for $4.20, thus a gain of $16,000. Of course I made nothing on the ETrade account.

So I need to find another broker for my ETrade account. I don't want to change it to TDAmeritrade because I don't want to put all my eggs in the same basket.
Anybody know of a broker that offers low commisions (<$10.), is comfortable with my trading options, and doesn't time out orders?
TIA
Pete

Stocktrading101 · #2 (**permalink**) 04-14-09, 04:31 PM

Wow that is pretty odd. I would suggest taking a look at TradeKing if you want low commissions and decent execution. Their trades are $4.95 with options running $.65 per contract.

You can view our speed Tradeking Review here on the site as well.

How long have you been using Etrade for and how long has the timeouts been going on for? I wonder if there is some setting that effects this or what because obviously that is really a problem.

PeteC · #3 (**permalink**) 04-18-09, 11:10 PM

Well, the account was with BrownCo for I can't remember how many years. Then a few years ago ETrade bought it from BrownCo.

There is a setting for most pages and I made that as long as possible. But for the page where you click "submit" it is very short.

Hell, I'm sitting in my livingroom, why time it out?

Thanks,

Pete

Fredledingue · #4 (**permalink**) 04-21-09, 07:40 PM

The reason why e-trade times out (I imagine between the time you typed the order and the time you press the submit button) is that they are afraid the value estimate has changed.

PeteC · #5 (**permalink**) 04-21-09, 10:09 PM

In my case, the estimate does not matter. I have a margin account with buying power of hunderds of times more than what I am buying.

And they do it on limit orders also. For sure the estimate doesn't matter then.

They are just a small time outfit pretending to be "trader savy"

Airelon · #6 (**permalink**) 04-23-09, 02:16 AM

I use optionsXpress for my active trading, and that's one thing I really appreciate about optionsXpress - is that the sessions do not time out ...

PeteC · #7 (**permalink**) 04-24-09, 10:07 PM

I might have to look into some of these others. In the etrade case, the timeout is only a problem when submitting a trade. I got them to allow the other pages to stay for 8 hours.

Are you sure that optionsexpress doesn't time out the actual "submit" function? I may be anal but when I ready to sell naked calls, I sit there with a real time chart (no delay), 1 second updates of the underlying stock or ETF and have the level two quote window open for the option. And I'll sit there with my finger on the mouse button for "ever" until I think the plot shows what I want and the option price is what I want, then I click submit.

I find this to be a very useful way to squeak out the last few pennies, enough to cover the commission or more.. One day I wanted to write a large number of options for $3.00. I was watching the level 2 screen and the bid price was fluctuating around 2.50 or so. There was a whole crap load of offers from 2.85 to over 3.00. Sometimes, momentarily the option would start to rise and all the offers below 3.00 disappeared and then a few would trade at 3.00 then the option would fall back. If it went down around 2.50 the offers in the 2.85 to 3.0 range would reappear.

It must have been some type of computerized trading that could move so many offers in and out in unison like that. I decided I would never get the 3.00 I wanted because of the large volume of offers in (and out) of the 2.85 to 3.00 range. Finally I changed my offer price to 2.98 and, not wanting to reveal my position, I sat there with my finger on the mouse. Sure enough the ETF started to rise and the option followed. Like before, all the offers less than 3.00 disappeared. That's when I clicked submit on the 2.98 offer. I got it !!! The trade went through. It never would have happened any other way.

Just to finish the story since I have told so much of it, I immediately turned around and prepared a bid of 1.75 to close the position. The ETF started to tank and, 12.5 minutes later I closed the position at 1.75. The net, slightly less than $16K. In 12.5 minutes. I have never done as well before or since. And I'm sure I never will.

Oh, I started out placing the order in both my etrade account and my TDameritrade account. The etrade timed out but the TDameritrade went as I descried above.

Ask me if I'm anal.

Pete

Pearlpam · #8 (**permalink**) 06-24-09, 05:57 AM

First of all, most brokers, advisers, money managers, and planners are likely to underperform the market because of fees and added costs eroding returns. But with so many professionals out there, it's inevitable that a few of them will get lucky and have great performance for five or ten years. It would be mathematically impossible that all would underperform the market.So if your portfolio underperforms for a year or two, it doesn't prove that your manager is bad, but it's an early indication that he's not likely to be one of the few that does beat the market over long periods of time.