on the NYSE offsets the generally lower explicit costs of trading in other markets. Execution refers to the size of the effective bid-asked spread and the amount of price impact in a market. The NYSE believes that many investors focus too intently on the costs they can see, despite the fact that quality of execution can be a far more important de- terminant of total costs. Many trades on the NYSE are executed at a price inside the quoted spread. This can happen because floor brokers at the specialists post can bid above or sell below the specialists quote. In this way, two public orders cross without incurring the spe- cialists spread. In contrast, in a dealer market such as Nasdaq, all trades go through the dealer, and all trades, therefore, are subject to a bid-asked spread. The client never sees the spread as an explicit cost, however. The price at which the trade is executed incorporates the dealers spread, but this part of the trading cost is never reported to the investor. Similarly, regional markets are disadvantaged in terms of execution because their lower trading volume means I. Introduction 3. How Securities Are Traded The McGraw−Hill Companies, 2001           86 PART I Introduction     Table 3.8 Online Brokers   Homepage Market Reliability* Download Order Share of (4-point Time Commission Online Best for . . . Broker max.) Accessibility (seconds) Rate Market   Beginners: These firms charge more but let you speak to a broker. Focus is on customer service over price. Serious traders: These clients have some online experience and a self-directed approach toward investing. Most online brokers target this group. Here the focus is on providing analytical tools, research, and convenience. Frequent traders: These firms focus on keeping costs down, which generally means fewer customer service and research options.       Schwab 3.3 98.8% 15.24 $29.95 27% Fidelity 3.21 97 9.19 25 9