The reason why they can offer fixed rates is they will take your money away when you execute the order. Otherwise the firm will go bankrupt if most customers trade very large shares to take advantage of the fixed rates. Some direct-access firms may offer fixed rates (beware of hidden costs or small prints). You need to calculate carefully to see if you can take advantage of these plans. See http://www.mbtrading.com/ratesStocks.asp (It has a fixed-price plan, but a direct-access firm. Read carefully!) Alternatively, you may try to find brokers with cheaper per-share (especially for lower prices)
Yes, it has. See http://www.mbtrading.com/ratesStocks.asp (It has a fixed-price plan, but a direct-access firm. Read carefully for the terms and real costs!)
ja, both plans suck big time and there's also a hidden .01c charge on top of the flat fee...never mind that u dont get access to most exch. and zip chance of gettin' price improvement [meanin' u also prolly wont be able to buy the bid/sell the ask].
Some IB customers do criticize or attack those who attack IB in ways that are obviously dishonest or extremely unfair. They do this to protect IB, and their own ability to benefit from doing business with IB. Fair criticism of IB generally does not draw attacks or criticism from other IB customers. IB customers usually want to see IB benefit from fair criticism.
Haven't checked them out, but I thought Schwab offered flat rate or per share, and they have direct access.
You're 100% wrong on price improvement at MB. I get it on probably 10% of my trades. And I also do 98% of my trades buying (covering) at the bid and selling (shorting) at the ask. So your point above holds no water. And although I don't have plan C (I use Plan A) at MB the $4.95 flat rate for up to 4000 shares does beat anything IB offers doesn't it? That's 0.0012/share for a 4000 share order. And if one had any brains they'd submit two 4K orders and one 2K order (for 10K shares), resulting in a total one way cost of $14.85 (3 x $4.95). Same on sell side .. total round trip cost is under $30!
Not everyone charges $100 round trip on 10K of a $3 stock. Since you took pot shots at MB you might try looking at Plan B .. $9.95 for unlimited shares plus ECN fees. Using INET on 10K shares would be another $25, or $34.95 each way. So you'd save $30 over your example. Or break the order up as I suggested in the prior post and you pay $30 round trip under plan C.
Plan C is flat rates up to 4000 shares. After that, it is not flat rates ($0.01 per shares). Anyway I just point out some direct-access brokers do offer flat-rates. Sure they have additional conditions or terms. There's no true cheap flat-rates in the world. They must earn their money somewhere. However Plan C, as given above, can be beneficial if you try to trade as close to 4000 shares as possible.