fees and commissions question

Hi im with this new broker called colmex. Im trading in cfds. Theyre're charging me .01 cents per share along with a routing fee of .0120. However when i looked at my daily summary it seems that the total fees of both are doubled. Do brokers charge commissions on buying and selling stocks?? I thought it was just when you purchased the shares that they would charge you on

 

and not when you sold your shares

 

Both sides.

 

IM sorry brokers normally charge for selling and purchasing stock fees???? is this with all brokers??

 

I'm going to state the obvious. The brokerage business is for profit. They make their money from execution fees and interest. Why would they charge you for only one side? You are trading an OTC product, so they can basically do whatever they want but YES, every broker charges for both the buy and the sell.

 

Assume per share cost is one way unless it is specified as 'round trip' in your deal.

 

I just got killed on commissions. thought i had a profit going turned out that i actually lost money on commissions and routing fees.

 

im with the wrong broker. Just talked with IB and they never even heard of routing fees. THye only charge on commissions.

 

Just out of curiosity aren't CFD's leverage products? I'm just wondering how with those fees of 5 cents a share for a round trip being leveraged can break a system from a profit to a loss.

Sounds more like a system/edge issue then a fee issue.

 

Directly from the IB website:

Our transparent Tiered pricing for stocks, ETFs and warrants includes our low broker commission, which decreases depending on volume, plus exchange, regulatory, and clearing fees. In cases where an exchange provides a rebate, we pass some or all of the savings directly back to you​

They do also have a flat rate 0.005/share $1 minimum commission plan, which would be an improvement vs your CFD broker. However, it is not at all unusual to pass on exchange fees.

Also, they are only offering you regular shares, not CFDs. Additionally, as I assume you are daytrading, you need to maintain a $25k balance at all times to avoid the pattern day trading rule if you are US based. Your CFD commissions seem pretty good to me considering you get access to leverage.