I attended a 2 hour session at a Schwab office on StreetSmartPro. What I heard was that if one uses SmatEX that the order goes through Schwab to UBS which Schwab uses for clearing. If one is using SmartEx then that is not really "direct access". Direct access is defined that you can pick what ecn be it ARCA, INET,(ISLD), BRUT, REDI etc... that you want to place the trade on. By default this is not given. You have to request this capability.

They will give you this capability but will point out that because the trade exists outside the Schwab sphere that if there are any problems with the execution then Schwab is not on the hook for it. It's up to you to deal with the ECN that made the trade. Good Luck doing that. (Their words not mine.)

What I don't understand is that with regards to fast daytrading with the market moving so fast its impossible to select what ecn would be the best because the offerings are changing so fast. What is the best price on this or that ECN right now might be different milliseconds form now.

For me I'm content to send it through Schwab to UBS. Maybe this isn't direct access in the purest form of the definition but for me able to make fast trades (usually) is good enough, whether its actually direct access or not is mute. (My opinion).