SEC fees on stock transctions going up.

Discussion in 'Order Execution' started by seasideheights, Mar 4, 2009.

  1. Too dumb?

    Wow, you are really in the dark about how it works.
     
    #11     Mar 4, 2009
  2. Dustin

    Dustin

    So "many times" equals "one time"...ok got it.
     
    #12     Mar 4, 2009
  3. Please do explain to me how it works.

    "Harry Markopolos blew the whistle to the Securities and Exchange Commission about Bernard Madoff as early as 2000. Why were his warnings ignored? Steve Kroft has the interview."

    http://www.cbsnews.com/video/watch/?id=4836927n
     
    #13     Mar 4, 2009
  4. As one person mentioned to me, unless they start reverse splitting stocks, overall revenue must have crashed. Because its based per million of total transaction on the sell side, they need to jack rates just to maintain revenues.
     
    #14     Mar 4, 2009
  5. That is a pretty devastating increase for a small portion of the trading community.

    Unfortunately, I happen to be in that small portion.
     
    #15     Mar 4, 2009
  6. go figuer, its not the only fee the GOV is going to pass on to traders.
     
    #16     Mar 4, 2009
  7. How tiny must your margins be...
    For this to be "devastating"?

    I made 441 trades today...
    With a total $$$ volume of $1,625,000...
    That's 192,000 shares with average price about $8.50

    My total commissions today will be about $650...
    And this SEC tax increase adds about $32.50...
    Increasing my transaction costs by about 5%.

    For this to matter...
    Your profit margins would have to be < 20-30%...
    Which means you do not have a viable business model anyway.

    If not this...
    Something else will come along soon...
    And put you out of business.

    As a general rule of thumb for stock trading....
    You better have margins of at least 40-50% minimum.

    My margins are a LOT higher.
     
    #17     Mar 5, 2009
  8. 192,000 shares traded is not alot.

    A 500% increase in SEC fees for large volume traders will amount to a few thousand dollars a month out of their pockets.
     
    #18     Mar 5, 2009

  9. By devastating, I did not mean put me out of business. But 30k less per annum in my pockets isn't going to be unnoticed. No matter what my annual income is.
     
    #19     Mar 5, 2009
  10. bevo96

    bevo96

    Just out of curiousity, what type of profit margins do you think the big black box firms run on?
     
    #20     Mar 5, 2009