IB trading 10,000 shares per clip+ commissions.

Discussion in 'Retail Brokers' started by coolweb, May 28, 2010.

  1. 10,000 shares * $30 = $300,000
    If I'm trading $5 stocks I'd need to buy around,
    60,000 shares * $5 = $300,000

    commissions on 60,000 shares ($5 priced stocks) = $300US , $600 roundtrip. I noticed my commissions went up to $50 per side, $100 round trip for ($30 priced stocks)

    Who also has this problem and moved to a $7.99 per trade mode? Could save me a lot of money like that.
  2. I dont trade that size but two things comes to mind.
    Why dont you use limit orders and try to catch the liquidity rebates to reduce the cost of trading.
    Would they really let you trade all the time that size at that price or a rep would call you at some point and explain to you that they can't make a dime that way (remember that they have to pay the exchange fees).
    And also, would you get the same fill? Isn't it possible that those "7$ online trades" sell their flow so that you would pay an extra fee by a worse fill?
    But it's a good observation (one that I ever though about) so I look forward to see what others think.
  3. I do use a $6.99 broker as well, Heres what I noticed
    a) when I ( MKT order) , It takes awhile, sometimes badly filled, espically when its very volatile.

    b) I would also (LMT order + 5 ticks) , this would keep my orders limited, but doesn't work great during volatile times, might get filled 1/2 partially.

    c) The orders are delayed about 20 -30 seconds.
    selling my flow?

    If I'm trading $5 stocks X 30,000 stocks , the $6.99flat trade is well worth it.
    At IB, I'd pay up the nose just for buying $150k of stocks, commissions would be $150 for 30,000 shares , $5 each.
  4. Regarding LMT orders (standing orders)
    I don't like it, because the marketmaker never fills your order if its going your way immedaitely.

    They will only fill LMT orders when its not going your way :)
  5. So you're asking a hypothetical? Or are you actually complaining that your comms are at $50 or whatever? Your post was so badly worded, I couldn't really figure it out.

    If you're claiming to be trading that size at IB, I'm calling bullshit. If you had been steadily increasing size, you would have 'noticed' your comms going up and done something about it long ago. You didn't suddenly go from your normal 100 share lot @ $1 to tens of thousands of shares. You can negotiate your comms with IB once you start trading bigger size.
  6. 300k isn't even size. Thats like my step up testing positions.
  7. arent you the guy with the 0.002% stop losses on your gold trade. And also did you not fuxx up every single of your EUR trades? Correct me if I am wrong.

  8. spd


    Im calling bullshit too.

    If you are really buying 10k+ lots on the regular you should already know the answer to the question you asked.

    If you are moving size and dont know how commisions are structured then you are just stupid.
  9. spd


  10. zdreg


    wrong. no negotiations
    #10     May 29, 2010