Rebate trading - best broker/ECN setup

Discussion in 'Retail Brokers' started by PBS, Oct 29, 2024.

  1. PBS

    PBS

    Is there still a combination of a broker and ECN that allows rebate trading, i.e. trading with a net positive trading fee (rebates for providing liquidity minus all other fees)?

    Please suggest the highest-paying broker/ECN.
     
  2. Robert Morse

    Robert Morse Sponsor

    What is your average order size? ARCA pays the highest rebate with us right now, $0.002/Share. If you choose the per trade rate of $3.99 (yes we give volume discounts). 5000 shares would be a rebate of $10 with a charge of $3.99 not including Reg fees.

     
    EdgeHunter likes this.
  3. PBS

    PBS

    Including reg fees, am I right in saying the net cost for 5,000 shares of a $30 stock will be around negative $0.12 (credit to my account)? Is anybody even still doing this kind of trading?
     
  4. Robert Morse

    Robert Morse Sponsor

    5000*30 = $150,000. The current SEC Sec31 fee is $0.0000278. $150,000*$0.0000278 = $4.17. TAF is very small- I estimate about $0.60. These fees will not vary from broker to broker.
     
  5. I use to be fair at rebate trading and did it for years. Why would you put yourself through that? The algos made rebate trading one of the worst ways to try to make money. In slow days of tech with rebates as high as $.0029 maybe, now I don’t understand. My volume was 1000 RTs on a less hyper day.
     
  6. this is NOT true. I get a higher rebate than that and not from ARCA
     
  7. Robert Morse

    Robert Morse Sponsor

    If you read my text, it said," ARCA pays the highest rebate with us right now." That was then. Today, with Lightspeed, EDGX pays higher, $0.0027/share for adding. https://lightspeed.com/pricing-fees/order-routing-fees

     
  8. you should be ashamed of yourself