Recent Cuts In Commissions

Discussion in 'Retail Brokers' started by jeb9999, Feb 17, 2017.

  1. Some brokers have lowered their commissions.

    On February 3, 2017 Schwab cut its commissions from $8.95 to $6.95.

    On February 16, 2017 Firstrade cut its commissions from $6.95 to $4.95. They also dropped options from $0.75 to $0.65 per contract.

    Which broker will be next to drop rates?

    When was the last time Interactive Brokers lowered their commissions?

    In 2016 IB's Electronic Brokerage pretax profit margin was 61%, up from 49% in 2015.

    IB has plenty of room to cut commissions if they are interested in shaking up the brokerage marketplace.

    Maybe they are content with 2016 profits of $756 million and DARTS growth of 2%.
  2. Robert Morse

    Robert Morse Sponsor

    If you like ticket charges for equity trades, we charge $4.50.
    murray t turtle likes this.
  3. Handle123


    Well, I look at commissions as insurance, it is nice if low but at what expense. Time is money, and when something goes wrong, I want to know they will answer by 3rd ring so I can get out, and should they experience problems, I want to know they going to text me.

    IB is so large, you think they care if some leave to pay a nickel less elsewhere? And I doubt shaking up marketplace, brokerages have costs they have pay and they not open to make losses. Actually, fees I believe are pretty low.
  4. I think tastyworks is shaking things up and will be a disruptor in this space. I am enjoying my low commissions. 1.15 to open an options trade and 0.15 to close!
  5. m22au

    On 28 February, Fidelity announced a reduction in commissions to $4.95.

    Schwab announced $4.95 stock trades and ($4.95 ticket + $0.65 per contract) option trades at 9.26am:
    The lower fees take effect from 3 March.

    TD Amertrade announced $6.95 stock trades and ($6.95 + $0.75 per contract) option trades at 8.22pm.
    The lower fees take effect from 6 March.

    Etrade has not yet cut their prices. They charge $9.99 for stock trades.

    Scottrade is being bought by TD Ameritrade, and the transaction is expected to close by 30 September.

    OptionsXpress is owned by Charles Schwab. OptionsXpress customers will be migrated to the Charles Schwab platform later this year.

    Last edited: Mar 1, 2017
  6. Robert Morse

    Robert Morse Sponsor

  7. truetype


    Just to clarify, there's no added ticket charge, right? Also, is there a cap? Presumably you wouldn't charge $600 to execute a 1000 lot.
  8. Robert Morse

    Robert Morse Sponsor

    No ticket change on the DMA software. No cap. Our commission rates also included the OCC fee of $0.05/side but not ORF and a few other smaller fees. If you are trading 1000 lots, I can do a lot better than $0.60/side. I can also offer SMART and DMA for the same cost on some software. Our SMART route can avoid the maker taker fees on many equity and etf options.
  9. m22au


    On 2 March 2017, Etrade reduced commissions to a similar level as those proposed by TD Ameritrade.
    $6.95 stock trades
    ($6.95 ticket + $0.75 per contract) options trades

    "Active trader" (30 trades per quarter):
    $4.95 stock trades
    ($4.95 ticket + $0.50 per contract) options trades

    These changes will take effect from 13 March 2017.

  10. m22au


    #10     Mar 13, 2017