Barron’s 2017 Best Online Broker Ranking has just been released (if no subscription, google line above and click through to article). http://www.barrons.com/articles/barrons-2017-best-online-broker-ranking-1489811850 For the first time that I can remember, IB is not the least expensive broker for frequent traders. Barron's calculates a frequent trader's cost at IB around $800 monthly, while they list a new firm, Tradier, at just $200. This is what they had to say about it: ------ "Assumes customer opts in to the all-you-can-trade-plans for stocks and options" "In April, Tradier will offer its customers monthly flat fee possibilities for unlimited trading: $19.95 for equities, and $99 for options. Currently the flat fee is available through a handful of partners including EF Hutton (the direct investment platform that owns the storied name), Chart IQ, Equities.com, and Key2Options. Very frequent traders could save a lot of money using these flat fees." ------- I haven't found any info yet on the Tradier page regarding these plans. EFHutton offers a 30 USD monthly flat fee for stocks, not including SEC or exchange fees (makes sense). So this should be rather compared to IB's unbundled commissions. I haven't done any further research on any of these firms yet. There are many considerations besides cost for choosing a broker. Please do not see this as a recommendation, and do your own DD. Personally, I find it a little strange that Barron's includes future pricing plans in their analysis. This is a bit like incorporating a firm's promise to provide better service in the future in their current rankings But I am nonetheless happy that Barron's brought this development to my and our attention, and I think it will be interesting to watch.
It is hard to tell with brokerage services when you compare pricing on their website if you are comparing the same service and access. Our standard option and stock commissions are very competitive. Although we focus on US listed stocks, options and futures, we provide DMA and SMART routes while many other brokers either don't offer DMA or make it hard to access it. Our service team gets to know the clients and so do I. For the markets we cover, we offer institutional quality service and support at discount broker commissions. We also offer choice of trading software that should fit your needs without the fear of autoliquidation without warnings. We were # 10 on that list. The range of offering lowered us on that list. I expect that is because we don't offer global trading or easy access to bonds. Fidelity got a 4.4 for range of offerings but they don't offer futures trading and I'm not sure they offer any DMA. We did do well for "best for frequent traders", which is where we focus our offering. my 2 cents...Bob
BTW with some further thinking regarding the Barron's list, I find it curious that they leave out robinhood (the "free trading app"). They do not provide a reason why they exclude it.
I imagine this may be the "killer app" that elimates 90% of the online brokers or at least their bloat-- all will be automated with customer svc outsourced. surf
You'll distinctly notice futures missing. C'mon folks this is all about monetizing order flow. If flow were regulated such that internalization was disallowed and NBBO was forced this stuff would be gone in an instant.
For intraday trading, the 1c a share round trip is too expensive. You cant buy on the bid or sell on the ask most of the time , unless its the WRONG trade, so effective vig is at least 2 cents for quick scalps. Zero or near zero is the right price. Non hft traders simply have been elbowed out of the fair order flow.
Retail order flow is the most valuable order flow to get for a market maker. It is dumb money, so they can easily fade that order flow all day and make money over the long run. That is why the Citadels of the world pay the retail brokers so much for their order flow. It is a license to print money. Thus the more order flow the retail brokers can send, by attracting more traders through lower commissions, the more that they make from payment for order flow.
It is very rarely that I "like" a post, but this one caught my eye. Maybe we have "a" wise old owl here after all It is all there for any person to read and learn about, but very few are even bothered to go and try find out, as the "easy money" is too alluring. I must keep my "eye" on you