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A comment on Morgan Stanley Closes Acquisition of E*TRADE. Parent comment

Re:Morgan Stanley Closes Acquisition of E*TRADE by nemothekid on Saturday October 03, 2020 @12:59PM (#24673258)
I'd be very surprised if Schwab started selling order flow. One reason why the old guys prefer Schwab/TD to robinhood (and paid the commission) was because of more consistent fills because Schwab wasn't selling order flow
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Re:Morgan Stanley Closes Acquisition of E*TRADE by JumpCrisscross on Saturday October 03, 2020 @01:09PM (#24673326)
> I'd be very surprised if Schwab started selling order flow

All the discount brokers sell order flow. When I was an options trader over a decade ago, we bought Schwab flow.

Professional trading platforms like IB tend to be more execution oriented.

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Re:Morgan Stanley Closes Acquisition of E*TRADE by quickthrowman on Saturday October 03, 2020 @01:06PM (#24673306)
Schwab and TD Ameritrade already sell their order flow, which shouldn’t be surprising in the least if you pay attention to stock and option trading.

Also, having your order sold to Citadel doesn’t mean you’ll get a worse fill.. Citadel still has to respect NBBO prices for fills

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Re:Morgan Stanley Closes Acquisition of E*TRADE by JumpCrisscross on Saturday October 03, 2020 @01:10PM (#24673338)
> having your order sold to Citadel doesn’t mean you’ll get a worse fill.. Citadel still has to respect NBBO prices for fills

Lots of orders fill better than NBBO in dark pools. That’s how Citadel et al make money. That said, the slippage doesn’t really matter for small cheque sizes—it’s too small to matter.

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Re:Morgan Stanley Closes Acquisition of E*TRADE by smabie on Saturday October 03, 2020 @06:32PM (#24675167)
Even with Schwab, I get tons of fills less than NBBO. Maybe not as much or as good as IB, but you're still getting price improvements a lot of the time.
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Re:Morgan Stanley Closes Acquisition of E*TRADE by mortehu on Saturday October 03, 2020 @04:27PM (#24674455)
They have to report the exact fraction of orders they sell, to whom, and for how much, so no need to speculate: https://content.schwab.com/drupal_dependencies/psr/606/2020-...

TL;DR: they primarily sell to Citadel and Virtu.

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