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the ECNs. As of August 2000, the most active ECNs are Instinet (INCA), Island (ISLD), and Archipelago (ARCA). |
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Even if you only make one trade every year, you cannot afford for your broker's network to be "down" when you want to make that trade. Network redundancy, communications redundancy, backup procedures, and manual error recovery systems are key criteria when choosing a broker. Ask to see their downtime reports and speak with some of their customers about their reliability record. |
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Systems will fail. Will there be anyone there to help you when they do? When choosing a broker, ask if it has automated systems to take care of the most common problems quickly. Does it have specialists to take care of unusual or difficult problems in a timely fashion? |
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Most important, does it have an experienced team, with advanced support systems, to help you solve a trading problem? The worst thing that can happen is for a trade to be "lost"it is your money at risk while your broker is trying to find the problem. Is it good at finding trades quickly? |
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Pay Attention to This Next Point! |
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You must realize that a network failure, a systems failure, or a customer service failure can result in a loss, sometimes a very big loss! That risk is yours; it is a risk of trading. Don't proceed under the mistaken impression that your brokerage will absorb this lossit won't! |
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It is imperative that you find the broker with the very best network and customer service possible. It could be worth a lot of money to you. |
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Other Types of Securities Services |
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Are you interested in electronic trading of options or futures? What about a preferential ability to purchase shares of IPOs? What about an ability to buy and sell mutual funds online? What about extended hours trading? What about trading on exchanges around the world? |
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