




2 thoughts on “The Average Investor Can (And Should) Ignore the 60 Minutes Story About “Rigged” Markets”

  1. Why is everyone thinking that somehow the limit order is a cure all for the problem. The way limit orders work, is you should get a price that is your price or less, but its never less it seems nowadays. What makes you think that anyone is working in your interest? I’ve seen a number of times, where my order for 100 shares of stock didn’t get executed, even though the price dipped below my limit price. It happened when I had a Scottrade account, since then I switch to IB, where it also occurred. Yes, the costs are just pennies. But it adds highly to volatility, and when you miss out on opportunity like I did, cause your limit order did not get filled. You start to wander why the system is rigged to allow for dozens of exchanges, where you limit order is not even sent to the exchange, but is being “SMART” routed!

    1. Well you can make the same argument for bidding on eBay or – actually – for anything else, e.g. bidding for a house.

      I once lost a bid for a RE property as I got a call from the broker while I was executing the locking offer.

      It was a fairly good deal and I suspected the broker for playing behind my back when the reailty turned out to be the seller playing behind our back.

      Their pick failed to raise the cash and the deal landed back to us, but to my shame I *did* suspect the broker at the time.

      There are surely lots of raiders on the market.

      Some claim it is all rigged and they may be right.

      If you believe so just stay out of it.

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