is bid-ask spread for equities the same from one broker to another?

Discussion in 'Trading' started by Rudolf13100, Aug 19, 2009.

  1. Hello,
    I was wondering if the bid-ask spread for equities was the same from one broker to another.
    Also, how much would you say the average bid-ask spread on stocks that comprise the S&P500 is (in % of the price?)
  2. The easiest way would be to look at the bid-ask on the SPY etf. It's what, .01 most of the time?

    You can also do the actual calculations involving all 500 stocks. I'm sure it'll end up being 1-3 cents most of the time. Keep in mind the first 5 min it'll be much wider than the rest of the day.

    In terms of percentages...the simplest way to describe it with SPY is to say that the bid-ask spread there is about 1 basis point since it's a $100 stock. 1 basis point=1/100th of 1 percent or .0001.
  3. it does not change from one broker to another?
  4. Not if you're dealing with real/honest brokerages, otherwise take your money & run.

    You might find some latency/delay in data from one broker compared to another but that's rare otherwise it should all be the same.

  5. Thanks very much for your replies.
  6. NoDoji


    I use 2 trading platforms at once - 2 different brokers - and the bid/ask is always the same for what while I'm watching except when a major volatility move is in progress; then the bid/ask often gets crossed.