[stanlyd]

Well its just about having the luxury of dealing with the ECN or the market maker whom is offering what you want. So this will allow you to see through level 2 whom is offering what you want and for the best price. Then you can place you order directly to that market maker or ecn,trader or whatever specifically. Otherwise you really have no idea where your broker would be routing your order.
Let me try to explain. Say you want 1000 shares at .50 you see on level2 that a MM and an ECN have only 600 (400 from one and 200 from the other) at .50 offered and the next offer is at .62. Well you wouldnt want to place a market order and get 600 filled at your price and the rest at the "best price they can get"(.62) Know what I mean?
I'm horrible at explaining this stuff, but basically it means you can trade direct with whom you want , whether it be a ECN,MM, trader. It also is useful in getting your trades executed quick. With some brokers they actually route the orders through market makers anyway so you using the broker as a middleman so to speak. They make all kinds of deals with MM's and other online brokers to share in the profits of filiing orders but it's not always in your favor how they get that job done. If your not day trading then it may not really matter. If your going for .20 ,.30 moves then it's important. Commissions will also not be the same, they will be a bit more depending how much you trade.
Here is more on the topic.

[igotyofire]

Quotes from elitetrader forum

"Why are you day trading with scottrade?....get a direct access broker. Scottrade is for swing/position traders mostly.

good luck

- nathan"

"Lina as you become more sophisticated in the mkts, you will naturally want to leave scottrade.... just like a baby bird leaves the nest. scottrade is ok for swing trade, but not daytrade. If my memory serves me right, you can not place a stop under .25 cents. Also tools like VIX, TRIN, TICK, Put Call, and Adv/dec are not available on scottrade. You, better than anyone else will know when its time to move on. Its ok for now, since your just starting out, but as your lil wings build strength.... you eventually will fly to greener pastures. Good Luck."

so im guessing i can just get my feet wet if i so choose but need to look elsewhere,heh

[smwinc]

Originally Posted by igotyofire »

"Lina as you become more sophisticated in the mkts, you will naturally want to leave scottrade.... just like a baby bird leaves the nest.

...

so im guessing i can just get my feet wet if i so choose but need to look elsewhere,heh

Exactly.

The general progression people tend to make is from a "general" solution to more specialised solutions, as their needs widen:

1. trading with "all in one" software for charts, orders and your broker/clearing firm. Usually a market-maker.

2. using specific software for charting (e.g. tradestation, Ensign Windows, etc), and different software to process orders (e.g interactive brokers, Infinity Futures, etc.)

3. Using one computer with specific software for charting, and one computer with specific software for placing trades.

4. Using one computer & one internet connection for charting, and one computer with a dedicated network for placing trades.

5. using one computer & one internet connection for charting, and one computer with a dedicated network for placing trades through software, which communicates with your own private clearing firm (e.g. Infinity AT clear through TransAct futures. If you use software such as TradingTechnologies, you nominate your own clearing firm.)

As your trading progresses, your needs progress. This is fine and a normal process. When you just start trading with a Simulation account or 1 lot's, your not going to go out and buy 2 new computers and start needing 30k a year just to cover costs.

The only issue comes when someone at stage (1) is trying to copy what someone at stage (3) - (5) is doing.

I.e. If you don't have a risk management plan - back up internet connection, computer, phone access, back-up trading account - don't trade with size that would send you bankrupt if one or more of your trading tools failed (because it happens to everyone, eventually).