IB commissions for low priced stocks

Discussion in 'Retail Brokers' started by Bitstream, Aug 9, 2006.

  1. kk, imo it ain't that fair i have to pay up $.5 a side for stocks priced @$3; i find very good opportunities every day on these issues but am very reluctant to be down $100 off the gate just cuz of commish...why pay $1 a side on a $50 stock and half that on somethin' that trades below $10. shouldn't ib base commissions costs on a per share basis?
  2. on a $2 stock i pay 1% in commissions, i dont think it is fair at all and doesnt do good for ib biz since nobody would ever touch these stocks with those atrocious costs.
  3. One lot of what? If you buying 1 share of a $3 stock and you can't stick the $1 commish, then maybe you'd be better off buying a latte. <just poking fun> ;)

    Maybe I'm not getting the question because the being down $100 part is not making sense to me. If you're talking a one lot of an option contract then that only costs $1, not $100. So again I don't see the problem.

    Options pricing.

    If that's not it could you be clearer with your question?
  4. that $100 was an indicative r/t cost based on 10k shares of a $3 stock...just to make the point.
  5. Right, I'm reading "lot" and typing "lot" but thinking share. Ugh me.

    I've seen a few that are better and don't have share limits on their "flat rate", but they're usually much much worse for options or other types of trades. But if you find better than that for the retail customer, please let the rest of us know.

    So I guess I don't have anything else to add except that I think that's a pretty good rate unless all you do is < $5 share stocks.
  6. yeah, of course am not complainin' about ib commish..they are very competitive, but that's only for stock priced above $50 and acceptable for those that trade at $20, anywhere below that becomes too much imo and unacceptable on stocks below $5. i cant see why i have to pay the same rate regardless the price of a stock, that's why i said that commish should be based on a share basis cost.
  7. I trade around $10 up stocks.
    Is IB a good option then?

    What other firms can I consider if I trade lower-priced stocks?
  8. it's a good option if they lower commissions :D

    in thier website commissions are promoted as max .1% of the stock price...but it is obvious it aint the case; wonder if ib reps think it would be a good thing to lower 'em to an acceptable standard, afterall they got everythin' to gain since i would at least ten-twentyfold my trades on low priced stocks... considerin' also that stocks priced at $1 are impossible to trade with this structure [u are down 2% off the bat due to spread and commish] it is all lost biz imo.
    #10     Aug 11, 2006