More bad Datek experiences
Written: Aug 11 '00 (Updated Aug 13 '00)
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Product Rating:
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Pros: some improvements
Cons: still far short of what you should expect
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| davegingerich's Full Review: Datek Online |
Introduction
I wrote an earlier review of this privately-owned, online trading company and it wasn't all that complementary. What's happened since then?
Well, not much except more bad experiences, some response improvement and rebates for order flow.
For more details about Datek, see my previous review from four months ago at
http://www.epinions.com/finc-review-5C64-A0EFDB4-38F5C8F3-prod6
The information in that review is still accurate and doesn't overlap with this one.
First the improvements
1. Performance. First, the Datek trading site doesn't seem to go down quite as often as it used to do. Of course, I'm not using it as much any more and it is still going offline occasionally so, your mileage may vary. But it does look like Datek has ironed out the frequent inaccesibility issues I experienced in March and April.
But be warned, when the site is inaccessible, you can lose money... I sure did. Recently, I had a limit order which hadn't filled for that day so with about 30 minutes left till the markets closed, I tried to cancel the order. Nope. Datek was down and the market was moving against me. I couldn't pull the order back and could only watch in horror as my order came closer to being filled. Finally, I called the Datek 800 # and asked them to please cancel the order. Well, he couldn't because THEIR network was also down. All he could do was write a manual ticket. Well that was worthless as in a couple of minutes the short sale that I had been trying to cancel was filled. Datek remained down until over ten minutes after the market closed and not wanting to remain short overnight, I had to go into the after-hours market and cover the short shares. But hey, their uptime is probably better overall than it was at the first of the year.
2. Rebate for Order Flow Payments. Another improvement is that Datek now rebates customers for order flow payments. That is, some market makers kick back monies to brokerages like Datek, or Schwab or Merrill, for placing orders with them. Usually, that means the brokerage gets a commission from you, AND, payment from the market maker. The extra money comes from giving the customer, you, less than best pricing. In other words, your broker gets richer and you get a crummier trade price. But not at Datek where all money they receive for order flow, if any, is rebated straight back to their customers in the form of a monthly credit.
3. Streamer. Datek's real-time, streaming quote system has a new look although it doesn't run any better, or more reliably, on my Sun workstation.
4. Electronic Document Delivery. One more change is that Datek offers electronic document delivery whereby they don't use the USPS to snail mail you your trade confirmations. You can request all electronic delivery, which doesn't seem to get them to you any faster, but at least Datek offers you one free trade when you sign up.
What Hasn't Improved
Datek still does not offer options trading although they promised it over 14 months ago. I guess we're never going to see it at Datek. Too bad. I make a lot of money with them and all of my commissions go to somebody else.
Conclusion
Overall, I'm not particularly satisfied with Datek. The improvements have come far too slowly and don't really amount to a lot. The $9.99 per trade price is low and they rebate for order flow, but, they still aren't real reliable and don't offer options trading.
Recommended:
No
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Epinions.com ID:
davegingerich
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Member: Dave Gingerich, ...duhhh...
Location: Colorado
Reviews written: 16
Trusted by: 10 members
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