Hey folks, I have reviewed MB and IB trading fees and such. From other traders experience, if I trade about 10 times a month on stocks normally above $20/shr. Which would you prefer? Scottrade doesnt have any serious fees to worry of, though trading $14 / round trip is just a bit too much for 100 share trades. Would the cheaper trading at IB make up for their fees? I know this is a newbie like question... I am just getting all mixed up trying to configure the fees.
You will not have ANY additional fees on IB if you trade 10 times a month. USD 0.005 per share is it.
With IB, if you make <30 USD in comission a month. You somehow have to pay some fee up to $10 per month. You first 10k earn no interest at IB.
Guys thank you for the heads up. Looks like I will go with Interactive Brokers and see how things go. Will probably open up a smaller account with MB just to compare. Thanks again, Stock
IB made a recent change you may or may not be affected by depending on how you split your funds between the two brokers: Jack
Another thing that wasn't pointed out in previous MB vs IB comparison threads is that MB gives you free level 2 quotes, IB does not (an extra $20 a month I believe). Something to consider if that matters to you. Also with MB you can have your unused cash swept into an MM account earning somewhere around 4.4%, IB offers a higher interest rate (Libor-0.5% = ~4.75%) but only on the balance above $10k. I have account with both BTW.
I have an account with both and mb isn't in the same league for a hard core trader. If you trade a few times a day no big deal. It kills me why someone would want to pay 1 cent a share vs 1/2 cent with ib? most people trade under 500 shares
If I trade 10 roundtrips or more a month does Interactive Brokers give the Level II for free? Does MB Trading give their Level II quotes for any size account, or do you need a minimum? Thanks again everyone.
I don't think IB gives L2 free no matter how many trades you do (at least I didnt see it on their fees page) I didnt think that MB charged for L2 at all but I just checked their web page (https://www.mbtrading.com/fees_software.asp) and according to that its "FREE with a $25,000 balance or if you trade 10,000 or more shares per month with Plan A, otherwise $10 per month (as of 4/1/06)." My balance is over $25k so its never been an issue for me, could have sworn it used to be free for all before...hmmmm