NZ - Order Execution

[trackers]

Got a problem....

Have been trading the NZX for around 4 years now. I use ASB Securities its not great, but I haven't really found much better, but now enough is enough...

My order execution is truly horrible.

Over the years I've put it down to bad luck, to being one of the inherent risks of placing purely limit orders, but honestly.... On occasion I've had orders active for weeks at a certain price and 90% of the people at that price are able to buy or sell, but never me... I've given up on the idea that its bad luck, or a coincidence and am now convinced that using this discount trader literally puts me at the back of the queue.

I'd hate to think how much poor execution has cost me...probably in the low tens of thousands in terms of missed buying opportunities at the bottom, and missed selling opportunities at the top....Losing a couple of cents a trade really starts to add up over time

Has anyone else experienced this? Has anyone got any advice? I'd be prepared to pay double the amount I currently pay to ensure good execution - I was always under the impression that the system was a queue-based computer system, but is it more complex than this?

Thanks in advance for your help :)
Trackers.

[QOH]

I find Direct Broking excellent. Even though I'm not a particularly large client, I find my orders go in within a minute or so, and at their rightful place. I've never felt disadvantaged at all.

[Hoop]

I also deal with DB. Had excellent service. Their (my) trading account is easily accessable. Monies earn daily interest credited to my trading account at the end of each month. My portfolio on the DB site is automatically updated with each order within minutes of the buy/sell transaction being successful.

Full marks 10/10

[shasta]

Trackers

I too use ASB Securities & am quite happy with it, although i have a margin lending account (not that i always use it!), by having this all mail goes to them first & gets on sent to me & by paying $250 a year in loan fees they do a fair whack of the work!

I only use the online DIY service, but have been vocal & rung them many times with suggestions & they do seem to take onboard, customer concerns.

I also bank with ASB, & don't exactly have millions invested with them, so perhaps ring them & discuss your concerns.

As an aside i like the DB site, & the super charts, & if they update your portfolio for you, why arent ASB Sec doing this?

Might be on the phone again tomorrow!

[Treetops]

Trackers
Think you might be right regarding the NZX shares through ASB Sec. Could it be NZX itself?
They are slow at acting when I put an order in, up to 7 minutes at peak times whereas the ASX seems hot wired in comparison taking seconds. I've assumed it was computer based but recently had visions of a broker manually doing it as it was frustratingly slow! Have been bewildered why sometimes I appeared to be at the head of the queue and lost out. I always put it down to broker to broker dealing or orders being pulled at the last minute. I empathise with your frustration :( Bit annoying also not having any portfolio update as well and the available funds update is quite confusing too. Direct Broking looks the best bank based alternative but wondered if it was worth the hastle changing.

[tobo]

This is an important issue you raised, Trackers.
I think ASBSec should be told...at the very least so they know if they don't sort it out they will lose customers. Remember we are the customers and it is we who hold the power.
I use ASBSec, have occaisionaly been surprised at their speed trading my order before I even get back to check price, but also occaisionly noticed several minutes delay to appear in the depth (not so critical as these times I am not at the top of the list).

No-one answered Tracker's question about how the queue works when several bidders mixed together at one price. We all assume it is chronological.
Hopes it's not big boys and mates first

[Shrewd Crude]

trackers,
I know what the problem is.....!
its simple, They dont like you...:D....
.....
.....
simple solution........... Buy at market... pusssyfooting around would have cost me many k, pusssyfooting around has saved you many k... oh well different people get different results...
[8D]
.^sc

[BigBob]

quote:simple solution........... Buy at market... pusssyfooting around would have cost me many k

Well with ASB that doesn't seem to make any difference...

I have on more than one occasion placed market orders only to wait for somewhere between 5-10 minutes for them to be executed...

I am an ASB customer (I have had very a worrying experience with DB) but would jump at the opportunity to switch to a decent online broker...

[kura]

I have to concur with Shasta, I use ASB for my trading activities, and DB for long term investments (operate through different companies and different brokers, so there will never be any question of "tainting" my investments taxwise) I have never had an issue with either DB or ASB, in both cases my trades have gone through as expected. (All my trades are at fixed price) Only time I thought your problem happened to me, and it was purely a delay in ASB updating their records and sending the email confirmation to me. (Think I was buying something, where the price briefly went down to my buy price, then up again, and I had allready figured out that I was at the front of the que)

Disc: Still have fond memories of Access Brokerage (just a pity about the money ay ? )

[trackers]

Thanks heaps to everyone who answered - Think I'll be making the move to Direct - Can at least give them a shot and see how it goes.

Shrewdy - You're right, I should just harden up and buy at market its probably done more damage the other way round vs money saved.

tobo - I agree - the costs are low, but over time they certainly add up to a decent amount of money... its a pretty impersonal process

Treetops - Yip, the times when its most annoying is when I've felt I must be at the top of the queue and missed out (obviously I watch depth a lot and can make a decent guess as to where I 'should' be)


I bank with BNZ who doesn't have a share platform anymore - I have to stay with them as the fiancee is a business manager there, so doesn't really matter where/who I trade with.

I realise that with being a small player you're always going to be at a disadvantage to the big players, just never thought it would be as pronounced as it appears to be

[PointyHat]

I have had two problems wiyth ASB Sec, once I bought 127 NZO when I put a limit order in but with plenty on offer, others seemed to be in front of me for some reason. The second time there had been no sales for days and I thought I would pick up 5000 out of the 5,164 on offer. I was left with only 164.\
Shrewed is right of course, I just ammended my order and bought a few cents higher.
I tend to buy at market 99% as I am always unlucky with the limit buys.