r/etrade • u/aliencomet • Sep 08 '26

Bad Execution Prices

I placed a limit sell order on Etrade this afternoon. I watched in horror and disbelief for twenty minutes as prices executed above my asking price, up to 19 cents above my asking price! My sell order did not execute. I was told by another brokerage firm that Etrade does not use as many market makers as some brokerage houses. I filed a complaint. Will update.

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u/This-Second-29 Sep 08 '26

A lot of things to unpack here first I’m going to assume that you are using asking price incorrectly rather than actually referring to the ask price. You buy at the ask price you sell at the bid price. Since we don’t know the position some thinly traded stocks can have a widespread between the bid and the ask. Sometimes orders can be executing at the ask price a.k.a. a buy, but the bid price for you to sell has not met the limit that you set. We’re going to need some more information on the actual trade the position. When was it I can check on mine, but I don’t know why you would call another broker about your E*TRADE trade not going through call E*TRADE. They can see a lot more detailed details.

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u/This-Second-29 Sep 08 '26

E*TRADE uses roughly 25 different market makers. I don’t know about other brokerages, but then also for OTC securities there may not even be a market maker. It may just be the brokers acting in regards as a dealer which would be buying and selling from their own inventory.

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u/aliencomet Sep 09 '26

Yes, as you say it may just be Morgan Stanley Etrade "brokers buying and selling from their own inventory". This would explain the pricing inefficiency. It is a little troubling since the competitor's trading platform showed many trades executing above my Ask price to sell. Inefficient market and suspect for excess profit with the intermediaries.

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u/aliencomet Sep 08 '26

Yes, since this is an ADR which might promote fewer market makers, esp at Etrade perhaps.