ECN fees

Discussion in 'Trading' started by businessstaxes, May 22, 2010.

  1. businessstaxes

    businessstaxes Guest

    i don't get why do some brokers charge for ECN fees for taking liquidity when some brokers don't charge ECN fees..

    i mean they charge by the shares?

    so 100,000 share at the market of .10 stock is couple of hundreds dollar more if the broker charges ECN fees while another broker charges flat?

    from customer or retail customer it's gives a bad impression of how stupid the brokerage industry or ECN charging per share? these fragmented markets chargin fees for providing what service?

    it's like $100 more difference from brokers who don't charge ECN and brokers who it really show the morons at the exchange or the ECN...or customers fooled. it really stupid. for people who don't read their statements or commissions.

    like these ECN provide what service to charge and ECN fee or SEC charging fees for doing what? these ECN and SEC are just bloodsuckers from the market participants
  2. your point is???
  3. businessstaxes

    businessstaxes Guest

    it makes the market look stupid. what business charges customers that way? only in freaking b.s. markets do they charge like this. does it cost more to charge like the ecn are what? provide what service,,they aren't even market makers. or brokers..jjust an exchange where poeple advertise bid and ask

    some brokers just charge a flat fee.

  4. ECN's charges are incurred by direct access traders or firms that want to direct the order to an ECN. Most online traders just send in order and the order is routed to a MM that will pay them for the order flow.

    98% of all .10 stocks dont trade on an ECN venue. That order more than likely is routed to Knight,DOMS,EtradeCaptialMarkets(Citadel) and other MM firms in micro world.

    Hope this clears some of the info that your misinformed about.
  5. businessstaxes

    businessstaxes Guest

    if you take liquidity you pay way more like couple of hundreds dollars more... for a trade

    the question is that some brokers like bank brokers charge flat.

    why don't just get rid of these ECN fees or SEC fees,,they are just blooksuckers providing no value and no service to the market participants.


  6. SAFIN



    ECNs are a seperate market that you have to pay to use.

    If you trade KO (Last $ 51.54) then lets say
    NYSE market BiD oFFER is:

    BID 51.51 OFFER 51.57

    And BATS market is

    BID 51.52 ASK 51.55

    Now, if your broker charges a flat fee (No ECN charges) you can buy KO at the offer price of 51.57. Your order will be routed to the market participants that your particular broker deals with.

    If you have an account that lets you choose where your order is routed, you can select BATS as the ECN and get your buy order filled at 51.55 for example.

    Hence, you can save money by routing to an ECN and you have to pay a very small charge for using their network.

    Even better you can put your order on the ECN as a limit order and if it creates liquidity, they will give you a rebate when it trades, reducing your overall trading fees.

    The SEC fee is a source of revenue for the SEC to supervise and monitor any wrong doing in the capital markets.

    I think for typical beginner level investors, brokers who dont allow their customers access to the ECNs are saving their customers confussion and thats how it should be for some.
  7. REG NMS.