How Many Echotrade Traders Pay Clearing Fees

Discussion in 'Prop Firms' started by RogerBlank, Oct 15, 2002.

  1. pay a .03cents/share in Clearing fees ON TOP OF their commission schedule?

    Please be honest!

  2. DaveN


    This is the SEC fee, correct? That is 0.03 cents per share only on the selling part of your round turn (yeah, I'm a futures trader, so this is a bit new to me.)?

    So, basically, are you saying that some traders pay 1.03 cents to sell and 1.00 cents to buy each share?

    I'd be curious to know how this works as well, especially in the case where some firms put an upper bound on your costs (e.g. $25 maximum charge). Is this extra?

    (About me: index futures trader for last 3 years, traded lots of stocks but only with Interactive Brokers about 4 years ago...before decimalization. I feel like I'm brand new to stocks again.)
  3. .03 cents/share in clearing fees? I have never heard of that?

    You may be thinking of SEC fees which are commonly passed on to traders at prop shops. The SEC fees are 1/300 of a percent of the dollar value of all sales.

    Example: You buy 10,000 shares of a $100 stock (not many left) and then you sell 10,000 shares at $100. The value of the sale is 1 million dollars and the SEC fee that you would be charged is $33.33.

    Hope this helps.
  4. DaveN


    Ahhhh. So, total cost to the trader is 1.33 cents on the selling side for a firm that charges 1 cent per share...
  5. Tony01


    That's true for Trade_Cents' example above, but SEC fees are figured on the $ value of the sale not how many shares were sold.

    For example: If you sold 300 shares of a $30 stock($9000), the SEC fee would be 30 cents($9000x.000033). The total cost would be $3.30 or 1.1 cent per share.

    BTW, I think IB includes this fee in their commissions which is why you may not be familiar with it.

  6. There are three items that traders are charged for every transaction they do with Echo. These items are clearly stated on the Pax statements that traders get every day. They are:

    <b>1.Clearing 2.Execution 3.Fees</b>

    I am assuming Clearing fees is what Pax charges to clear the trade, Execution fees are ECN fees, and "Fees" is what everyone is refering to as SEC fees.

    However, I was told that Echo has rebates for these fees. <b> What exactly is rebated?</b>

    And if you have rebates, why charge the trader in the first place?...leaves room for "accounting" mistakes.

  7. This is NOT the SEC fee! Clearing fees are separate from SEC and execution fees.

    I am saying that I know a trader who pays <b>.01cents/share</b> in commissions and on top of it he pays <b>.03cents/share</b> every month in Clearing fees. He also pays <b>.0006cents/share in regular Fees (SEC fees)</b>.

    I want to know <b><font size=3>if Echo is advertising .01cents/share then why are they charging traders OVER .04cents/share?</font size></b>

    Can anyone at Echo deny this??? Is there a Clearing FEE?
  8. I am quite certain that this is included within IB's fees.
  9. What's this, WWF Smackdown? Just read the fee schedule on the web site. Duh!

    "The above rates for traders are based on orders placed via ECHOtrader, ECHOtrader 2, First Alert, Sterling, RTW, or Peace/AT Financial. These rates do not included any SEC or exchange fees. Orders are routed directly to the exchange."
  10. Beaburt and friends - Welcome Back.
    #10     Oct 16, 2002