Execution Price (“At or Better”)
Trade Price Compared to the National Best Bid and Offer
Scottrade understands the importance of providing timely executions at the prevailing market price. We closely monitor our trade execution prices against the National Best Bid and Offer (NBBO) in an effort to ensure you get a fair price on your trade executions. Monthly statistics show Scottrade delivers trades at or better than quoted prices over 98% of the time on average during normal market conditions.
The following chart represents the percentage of orders at Scottrade that were executed at prices at or better than NBBO as compared to Industry At or Better percentages:
The Execution Price percentage reflects the number of trades that were executed at or within the NBBO. The Execution Price percentage is an important component of overall execution quality because it measures how often you get the price you are expecting, or a better price than you are expecting.
Trade execution statistics are provided by VistaOne Solutions, which is not affiliated with Scottrade. Statistics are based on trades in NASDAQ 100 and S&P 500 stocks for market orders of 100 to 499 shares in size. Statistics exclude trades outside of the regular trading session, orders received during locked or crossed markets and trades that, in Scottrade's discretion, occur in extreme market conditions or other unusual circumstances. Market volatility, volume, and system availability may impact trade execution quality. This information is updated monthly.
Scottrade monitors the execution quality of all the trading centers to assess whether the trading center is providing our customers best execution*. Scottrade uses various monitoring methods. These methods include a daily order-by-order exception report analysis. They also include a post trade date regular and rigorous review of execution quality. We perform this regular and rigorous review by analyzing statistics from VistaOne Solutions and by reviewing the output of our patented algorithm, the Scottrade Best-Execution Index or SBI™.
* defined in SEC rule 605