Concerned over Commsec executing "at market" orders only at their discretion

[derangedlawyer]

Just found out that commsec executes your "at market" orders.. not really "at market", but at their discretion.
In a particular instance, I have been told by them something along the lines of "your at market order has not yet been executed because the bid-ask spread on that particular ETF was not large enough at the time the order was placed".

Is this normal practice from Commsec? And can they do this?
If this is the case, paradoxically limit orders would get executed faster than market orders.

 

[Smurf1976]

I've never known the details of why but I've certainly observed that "at market" orders don't necessarily execute immediately.

That said, some analysis found that the delay was to my advantage, albeit only slightly, compared to placing limit orders at a price that would immediately execute.

 

[Dona Ferentes]

it's an ETF ....Check how market maker decides

 

[bellenuit]

"your at market order has not yet been executed because the bid-ask spread on that particular ETF was not large enough at the time the order was placed".

I don't know the CommSec policy, but I would have thought that a smaller spread is more advantageous to you, as that would be closer to the "true" value at that point in time.

 

[qldfrog]

I noted that with comsec, when I put an order like "buy up to xxx "(during trading) , I am always filled at that max price, never any good surprise so i have a somewhat absence of trust with them, this is not the case with bell direct so my very low level of trading with Comsec, over the obvious extra cost of their brokerage.
While I do most of my banking with CBA, I feel comsec treats me as a sucker
DYOR

 

[derangedlawyer]

I don't know the CommSec policy, but I would have thought that a smaller spread is more advantageous to you, as that would be closer to the "true" value at that point in time.

An "at market" order is supposed to be executed IMMEDIATELY, that is the point of buying or selling at market. You risk your order being front run (and front running the order flow seems to be one of the best way to make money nowadays), but at least you get things done. Good when someone is in a hurry.
If they tell me ".. yeah but we do it manually" then it defeats the whole purpose and exposes traders to their shenanigans.

 

[Smurf1976]

when I put an order like "buy up to xxx "(during trading) , I am always filled at that max price, never any good surprise so i have a somewhat absence of trust with them

I haven't had the same experience, orders are often filled at a price more favourable, so it might depend on the stock in question?

Or perhaps that my limit orders are all entered when the market is closed explains it?

 

[qldfrog]

I haven't had the same experience, orders are often filled at a price more favourable, so it might depend on the stock in question?

Or perhaps that my limit orders are all entered when the market is closed explains it?

At Close, no problem, your order will be processed with the next open which seems to match between bell direct and comsec, but not so during trading..could be bad luck, just a feeling...but i lost trusti suspect they process their dark pool first and why should i complain, i got my order within requested Price range.