The Hidden Costs of No-Fee Trading

Discussion in 'Trading' started by 777, Aug 23, 2022.

  1. newwurldmn

    newwurldmn

    they don’t do pfof. How were you able to study the execution.
     
    #21     Aug 24, 2022
  2. How do you know? lol
     
    #22     Aug 24, 2022
  3. I'm not going to write an academic paper here with all the details but the high level version is that I wrote software to send orders at identical times to both IB and TD and compare total costs. Sometimes TD was over $100 higher cost when spending just $5,000. These were trades for volatile equities with high trade volume at the time. You obviously won't see such big discrepancies when trading something like SPY.

    To do this right you need a trade size that is taking more than the lit liquidity at NBBO. Citadel and other PFOF firms basically get you because the SEC allows them to trade with you based on displayed bids/offers yet there is tons of dark liquidity at NASDAQ and the other large exchanges.
     
    #23     Aug 24, 2022
    ajensen and newwurldmn like this.
  4. %%
    Good read but the headline photo conflicts with the news article ,so they should clean up those conflicts. All those fees are disclosed in any public broker.
    NO body works for nothing\ even ''non profits.'' Charity work maybe an exception.
    Maybe their lawyers advised against it; i wish they would have put some names on the 2 or 5 brokers.:D:D
     
    #24     Aug 24, 2022
  5. KCalhoun

    KCalhoun

    I get great fills with fidelity, within .01 for virtually everything, for trades up to 500 shares, with no commish..... huge savings (I'd spent 33k on commishes in the 18 months prior to zero-commish pricing)
     
    #25     Aug 24, 2022
    easymon1 and murray t turtle like this.

  6. the biggest cost is

    the cost of

    being

    w
    r
    o
    n
    g



    try being right , it helps. see my posts for guidance
     
    #26     Aug 24, 2022
    murray t turtle likes this.
  7. newwurldmn

    newwurldmn

    thank you for the explanation.
     
    #27     Aug 24, 2022
    murray t turtle likes this.
  8. %%
    THERE is more than a few market makers;
    G1 Execution,
    GS,
    MS,
    Citadel,
    VIRT,
    JPM,
    Apex
    2sigma,
    + Wolverine [+ BAC] is on some lists dont know why that list excluded them , maybe not as much business?? I dont even know the % Citadel has.
    I'm looking @ bigger trends + not order intent\cancels.
    Sure, as you noted , any market with fewer dealers or lower volume = wilder.
     
    #28     Aug 24, 2022
  9. Gene Wilder ?

    upload_2022-8-24_12-24-10.png
     
    #29     Aug 24, 2022
    murray t turtle likes this.
  10. who doesnt have great fills these days ?
     
    #30     Aug 24, 2022
    murray t turtle and KCalhoun like this.