Discussion in 'Trading' started by Janati, Sep 29, 2009.

  1. Janati


    Can you recommend a broker that allows shorting stocks under $2, has low commissions on large bulk shares.

    I've transfered out of Bank of America to Interactive Brokers and would probably be happy with them except:

    If I'm interested in stocks under $2 - the .005 per share commission hurts you more than if the stocks were $50. The fee is .005 per share.


    For 1,000 $50 stock the fee is $5
    For 10,000 $50 stock the fee is $50
    Total : $500,000 plus $50.

    For 1,000 $2 stock the fee is $5
    For 10,000 $2 stock the fee is $50
    total: $20,000 plus $50

    What if I'd like to invest $500,000 in $2 stocks.
    That is 250,000 shares would cost me $1250 a trade.

    From what I've read IB is great on fees but many brokers charge nothing on unlimited shares. The set back is they don't allow shorting stocks under $2.
    The above example only illlustrates stocks at $2 - if they are significantly under $2 then I may be in trouble.

    Any help, suggestions?
  2. Janati


    I'm a novice trader with alot of questions. As it goes sometimes they don't get answered. This should be expected when I post on the discussion forums of craigslist. I'm testing my luck here.

    I'm not aware of many forums like this one. So if you have any suggestions of forums/websites that have informative discussions on investing/trading please fire away.