when your acct reaches the size of those who complain, then you'll understand. spend $15,000+ per month on commissions and you'll have an appreciation for just how much a 'measly' dollar or 2 per trade adds up to.
It's a really interesting discussion. Anyone remember the "good old days" when Merrill Lynch brokers were charging like $50 for a 100 share trade ? I do. But that was then and this is now. With electronic trading and all of the software and hardware in place, the cost per trade to an exchange is almost negligible. That's why the CME is so profitable. Bottomline: I agree with everyone. Yes, the commissions appear cheap compared to the past; but yes, they could be lower still.
Toughenup lads!! In the UK if you trade through an sb firm you pay the equivalent of $100 per 1lot of Crude oil futures trade. The layout of trading is different over here for us, its traded in £s per point, not in 'lots'. So for example when you want to buy crude oil and for every 1cents movement in oil you want to make/lose £10s, you pay £120 comission for each trade. (All profit is tax free) But you USA guys who moan about paying a few dollars comission per trade need to just toughen up!
I think trading costs and market effiecency go hand in hand. The higher the trading costs, the less efficient the market becomes. I guess we can conclude that the market has become very efficient over the years since trading costs have come down substantially. Just a thought.
Just about 10 years ago commissions ran about $50. About 10 years prior to that they ran in the $100 range. Some traders make money, some dont. It's very easy to think that commissions are your biggest obsticle, and certainly they are not an expence you should ignore, but if your not profitable because of commissions then in most cases the commissions are not your true problem, you probably need to continue to improve as a trader. The good news for you though is that most traders lose money even if they paid no commissions....so if commissions are the only thing holding you back at this point you are a miles ahead of the majority of the crowd. Brandon
Hell they still do. I have a two full service brokerage accounts for my retirement portfolios and LOATHE the ludircrous fees they charge -- I think it was like 1.1% of the transaction when I sold 2500 shares of UST last year after the MO buyout was announced, and cost me something like $1120 for the 'preferred' (er, "discounted") commission rate my broker offers longtime clients. (Compare that to picking up 1000 shares of another position at ToS for (IIRC) $15. That's money saved!) Once "my" broker there retires I will be moving to another firm. For personal reasons, I've kept my account there because I don't need to trade it very often --- I loathe the fees these guys charge for clicking a buy/sell order (I can do that) and just hate having to pick up the phone to speak to someone to place a trade when you can do it yourself. It's not like they're doing any financial planning or advice for me anyway.
Look into electronic corporate membership through CME/CBOT. You will have to do your own research, but it could potentially save you alot. I have looked at it a couple of years ago. The guys at Mirus Futures are well versed on it. Here is a link to there website where you can read up and see if it makes sense. http://www.mirusfutures.com/