Trading conditions on US markets

How to access the US market

When placing an order on the US market, it is also necessary to specify the destination circuit, Market Maker or ECN.
For some stocks, only Market Maker is available.

Trading operations on the US markets does not require to open an account in US dollars: the liquidity is always available to trade on all US Stock markets (CME or US Stocks), with an immediate euro-dollar conversion and without costs.
This applies to both purchases and sales orders (exchange rate detected by LMAX at 10pm, applied by 11pm to operations on the same day).

Free realtime quotes (last bid and last ask price) on NYSE and NASDAQ are integrated in all Directa platform.

Commission structure

The commission structure uses a new logic that has been a considerable success in the USA with the very active traders. As we all know, to execute orders that take liquidity from the book (directly affecting the bid or the ask price to purchase or sell), ECNs require payments, and they charge the investors with the payment of those fees. However, in addition to the normal commissions; if on the other hand, an order forwarded to the ECN adds cash to the book (being placed without affecting directly the bid/ask price), when it's executed, the ECN grants the broker a commission writeback, which in the case of the direct access broker, as Directa now is, are totally transferred back to the client's account, discounting it from the commission.


Applicable commission plans

The basic commission plan per executed order is $ 9 :

  • flat with Market Maker
  • with the addition or reduction of any charges or refunds recognised by the ECN.
(N.B. in the event that these savings on the commissions are higher than $ 9, the commission will be set to zero, and the excess will be credited separately on the Customer account statement, making up part of the investor's taxable income).

Cboe (ex BATS) usually pays up to 0.20 cents/share for orders that add liquidity to the book: Directa will deducts them from the commissions (i.e. $ 2.0 for every 1000 shares); on the other hand it asks for 0.20 cents per share for orders that take liquidity away from the book: and Directa will add them to the commissions.

Orders

Upon order placement, the client specifies whether to send the order to an ECN or to the official market via Market Maker.

The quantity of the order sent via ECN could be either below 100 pieces or multiples of 100 (for example to purchase 535 pieces it will be necessary to enter two orders: one for 500 pieces and other for 35 pieces).

Both multiday and stop orders are available, handled directly by the American Market Makers.
The logic is the same like that used on the Italian markets, except for the stop order: the "ALL" function is not available for them.
Neither one is accepted via ECN.

Useful links

For further information about the functions of individual ECNs we refer you to their sites:

www.cboe.com

www.nyse.com

www.nasdaq.com