Commission question for Don B

Discussion in 'Prop Firms' started by Ron Hansen, Jan 8, 2002.

  1. Don,

    Is it correct that the SEC charges an additional fee on shares 2100 to 5000 when professionals (retail also ?) trade ?

    Is this is so, what is that fee ?

    With BT's maximum cost of $25.00 per trade, and me wanting to put on 3500 shares, is it cheaper to trade twice (2000 shares and then 1500 more) for a commission cost of $35.00, or one trade of 3500 shares for a cost of $25.00 plus the above mentioned fees ? I'm trying to figure where the break point is in this fee structure.

    What guidelines do you have for allowing Bright traders to go above 4999 shares (which I was told is set as default on the Redi machines) ? .... $$$ in their account, time with the firm, ????

    Appreciate your help.

  2. The pricing from the NYSE is subject to change, and it is my understanding that it will be modified soon (downward). You are correct in assuming that all traders should think about not trading 3500 shares at a time (for now). Only new traders are limited to the 4999 hard limit (just to stop errors), and after a while the hard limits can be changed when requested.

    If you think about it, 5000 shares at a time is pretty liberal for anyone to begin with, don't you think?