Trading For Dummies. Lita Epstein

When working with direct‐access brokers, one key difference is that the software you use may reside on your own computer and not on your broker’s server, which greatly accelerates the speed at which you can trade. Again, some discount brokers provide software to enable you to receive direct raw data on your home computer, but their software isn’t as sophisticated as what direct‐access brokers have to offer. We cover software issues in detail in Chapter 4.

      

We often talk about how you can miss trading at the prices you want, especially in fast‐moving markets. Well, having direct access doesn’t guarantee that you won’t miss a price, but your chances of catching those prices are better because you don’t have to wait for pages to download from your broker’s server. Of course, for this advantage to work for you, you must have high‐speed Internet access, which can include DSL, cable, or satellite access.

      Working with a direct‐access broker gives you a steady stream of raw financial data – the actual trades, current bid and ask prices, trading volume, and market statistics. The trading software that you load onto your computer determines how this data is organized and presented on your computer monitor. Providing better access is how direct‐access brokers distinguish their services from other brokers.