ONLINE BROKERS
www.cybercorp.com www.suttononline.com www.polartrading.com www.pfgbest.com www.zapfutures.com www.alaron.com www.iepstein.com POINT, CLICK, AND TRADE
Considering that the number of online traders is growing at a rapid rate, the increase in online brokerage services comes as no surprise. With numerous choices available, it is becoming increasingly challenging to select the right brokerage to meet your needs. In addition, several new trends are emerging within the trading arena. One that has attracted attention over the past three years is the electronic communications network technology (ECN). It has given traders the opportunity to send their trades directly to the electronic marketplace without having their orders routed through the marketmakers or other middlemen.
Although the fees for brokerages that provide this "point, click & trade" technology can range anywhere from $50 to $300 per month depending on which options you choose, most active traders find the services to be superior to those of the typical online discount broker offering the more traditional order routing.
FIGURE 1: CYBERCORP.COM
CyBerCorp (www.cybercorp.com) is one brokerage that provides this kind of state-of-the-art trading (Figure 1). Customers can set up their desktop to display quotes, personal tickers, alerts, charts with technical studies, a portfolio manager, market view, Nasdaq Level II, market movers, messages, and a trade window, where you can chat with other traders.
FIGURE 2: CYBERCORP.COM 5-D GRAPH
If that's not enough to keep you busy, you can try CyBerCorp's signaling tool, CyberQuant. With this tool, you can filter stocks using several critieria both fundamental and technical, which can be updated in as little as 15 seconds. You can have the results displayed either in a spreadsheet format or a unique five-dimensional graph. This 5-D graph (Figure 2) makes it easy to identify stocks that most closely match your criteria.
FIGURE 3: SUTTON ONLINE
Another site worth visiting is that of Sutton Online (www.suttononline.com), where users have a choice of three different trading systems (Figure 3). Level I is for those interested in discount online brokerage services, and Level 1-1/2 and II are direct access trading systems. If you opt for these levels, you receive Nasdaq Level II quotes, real-time charts, market screens, Island book, time & sales, top list, an order trade window and short list availability. Users who wish to utilize the Levels 1-1/2 and II services need to download the Sonic 2000 software before accessing these services. A Level II tutorial, which is free to users, is available online. Customers I spoke with said they have generally been happy with this service.
FIGURE 4: POLARTRADING.COM
Polar Trading (www.polartrading.com) offers its customers a choice of two systems: Polar Trader or Polar Trader Jr. (Figure 4). Polar Trader offers Nasdaq Level II quotes, customizable charting, instant order entry and trade confirmations, position management, an interest list, options quotes, and integrated Web browsers. Polar Trader Jr. does not include Level II quotes. An interesting feature that is offered to customers is the Internet Continuing Education (ICE), an online training service. It includes topics on technical analysis, such as pattern analysis and momentum trading. Other subjects include understanding Level II, short-term trading strategies, and trading as a business. Some of these courses are free. In addition, customers also receive access to TheStreet.com, baseline reports, and NewsAlert free of charge.
FIGURE 5: PFGBEST.COM
Futures traders who wish to try their hand at direct order entry should visit Peregrine Financial's Website (www.pfgbest.com) (Figure 5). You can download a demo from the Website that will walk you through the entire process of executing a trade. From the homepage, you can link up to external sites that generate trading signals such as Walter Bressert's Indicators, Floyd Upperman & Associates, and the Wasendorf Trading System, which are subscriber-based services. In addition to these signals, customers also receive the Commitment Of Traders report, crop and meat reports, weather charts, quotes, end-of-day charts, and intraday charts.
TRADING SIGNALS
There are numerous newsletter services available to traders that provide trading signals updated on a regular basis. This type of service is popular among futures traders, and some brokerages provide this service in conjunction with online trading. Don't be surprised if you have to pay an additional fee for such services. Although these brokerages do not provide direct-order entry systems, they are worth a visit.
FIGURE 6: ZAPFUTURES.COM
Zap Futures Inc. (www.zapfutures.com) has introduced some features to its site that deserve mention (Figure 6). They have introduced the Hands Free Zap 2000 service, which makes it possible to automatically convert trading signals into futures and option orders without your having to physically place the trade. Customers have a choice of five systems, which they can use to place trades online, through a full-service broker, or through the automated system. To gain confidence in the significance of these systems, you can take advantage of the free trial or make use of the free unlimited online test trading. Apart from the signals, you have access to research; special reports; real-time quotes; intraday and historical charts; and Zap audio (a live commentary from the pits).
FIGURE 7: ALARON.COM
Alaron Trading Corp. (www.alaron.com) also provides its customers with trading recommendations through its "Technical Trade" report, which is updated daily (Figure 7). It identifies technical patterns and issues recommendations. Buy and sell signals together with stops are suggested to help traders make decisions. Bond and financial futures commentaries from a technical analysis viewpoint are also provided. Apart from the trading recommendations, Alaron also offers broker-assisted paper trading, which is designed to help beginning traders stimulate trades in the real-time environment.
FIGURE 8: IEPSTEIN.COM
Ira Epstein's (www.iepstein.com) brokerage service offers daily recommendations to customers (Figure 8). One customer I spoke with indicated that he receives between 20 and 40 markets reports per day. This site is more focused on its charting features. Three different versions of its charting software are available and need to be downloaded. The Irachart standalone is probably the most interesting of the three. You have access to more than 500 futures and 29,000 stock charts on which you can insert technical indicators such as moving averages, stochastics, and Fibonacci studies.
In the fast-changing trading environment, online brokerages need to keep up with the times to remain competitive. To meet this need, they are constantly adding new features and altering their Website features, so it's worth your time to regularly visit the various brokerage sites to stay abreast of the changes. -- Jayanthi Gopalakrishnan, Staff Writer
Originally published in the March 2000 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2000, Technical Analysis, Inc.
