Something for Newbies to consider..

Discussion in 'Retail Brokers' started by qwiktrade, Jan 1, 2002.

  1. i thought it might be useful to let newbies take a peek at a chart that compares my commissions when i was with CyberTrader and now with IB.. now, before SuperSoes was introduced IB was not an option that i felt comfortable with because of the inability to direct selectnet orders.. but now that selectnet has been retired, IB is every bit as good, if not better than Cyber in terms of execution.. on to the numbers..

    in 2001 i traded a total of 3,780,884 shares.. 2,957,112 were with Cyber at an average cost of .0238 cents per share.. 823,772 were with IB at an average cost of .0096 per share.. thats a difference of .0142 a share.. so the difference in cost for me to trade with Cyber vs IB for one year is 3,780,884 *.0142 or $53,688.55

    as you can see, commission costs can make a significant difference to your bottom line.. some of the brokers like Mbtrading and CyberTrader that charge per ticket are not good deals if you trade small shares like i did this year.. there are other brokers aside from IB that also charge per share like Bright Trading and Echo.. just something to keep in mind..

    ive attached a chart of my actual commissions for 2001.. i didnt trade for a couple weeks around feb-mar and in august so thats why the flatline.. i switched over to IB in the beginning of September..

  2. Quik,

    Are you implying that you used to use SNET preference orders often with smaller size? I never had much success or use for SNET pref in my trading. Agree totally on the cents per share pricing vs. per ticket though. Makes a huge difference for smaller size traders like me.
  3. DaTT..

    mostly when i was with Cyber i just used REDI to hit mm's becuse its routing was efficient and cyber only charged .002 a share.. but yes.. i used to use selectnet on occasion.. mostly i considered it a safetynet in case the stock started freefalling.. that way i could hit someone a couple levels down.. obviously supersoes has sequential execution so that type of routing isnt possible now.. of course you could still snet someone but since its not the primary vehicle for execution anymore i doubt the market maker would notice the order..

  4. WarEagle

    WarEagle Moderator

    Hey Qwik,

    Have you decided how to spend the extra $50k you are going to make this year? :)

    And people wonder why IB gets so much attention here...

  5. well.. i was thinking that i might use the 50k as a down payment on a porche.. or maybe a rolex.. i mean, thats what it was going for anyway.. except last year it was someone at Cybers car and watch =)..