Trading Costs Across Brokers

Discussion in 'Order Execution' started by ajensen, Aug 27, 2022.

  1. Fain

    Fain

    Such a newb academic study. Testing $100 trades means everything was an odd lot order.

    C. Trade Size and Price Execution
    "Our main experiment relies mostly on $100 trades. Originally, the experiment involved making larger $1,000 trades in parallel with the $100 trades. However, after six weeks of trading, these trades were halted for two reasons. First, these trades caused the cost of the experiment to be very high, so capping this cost would have resulted in a significantly lower number of observations."
     
    #11     Aug 28, 2022
    murray t turtle and Snuskpelle like this.
  2. This is simply untrue. lol. Two things are certain about trading, 1) You can make good money, and 2) You must figure things out yourself.
     
    #12     Aug 28, 2022
    murray t turtle likes this.
  3. ET180

    ET180

    You don't have to be a professional to use the tiered schedule. Although it is not available on the IBKR Lite.
     
    #13     Aug 28, 2022
    MoreLeverage and murray t turtle like this.
  4. It's all about how we figure things out in trading, I agree. You will gain more clarity about trading the more you research on your own.
     
    #14     Sep 5, 2022
    murray t turtle likes this.
  5. %%
    NOT likely, but it sounds right TD> beat Etrade[/MS +HOOD. But i've only read 33 pages of 69.
    sounds fairy accurate so far.
    Except i dont know as of yet how ;
    $1] how many $1 stocks they trade + i dont trade any of those LOL.
    $100] Average size so far is $100, so that may be a professor idea\LOL :D:D I think it was AMZN in therebefore split, so sounds maybe too heavy on $1 stocks
    Also HOOD was not first to offer ''free'' trading, as thy stated; but i will not hold that bias against them\ for now anyway. Fun read:caution:
     
    #15     Sep 12, 2022
  6. "When the experiment started, we also traded 26 of our stocks each day with a target value of $1,000, again using the same logic to round to the nearest share; these stocks were rotated each day. For the 26 stocks with both $100 and $1000 targets, the two trades were placed at the same time with the order randomized. We found similar results across both trade sizes. As a result, we later discontinued the $1,000 trades to reduce our transaction costs and commissions (see Appendix A)."
     
    #16     Oct 22, 2023
    murray t turtle likes this.
  7. The study is about market or marketable limit orders of small size. You place a marketable order, and your slippage cost is $x - seems like a hard to argue fact. Unless your strategy doesn't fit those parameters, I'm not sure how any of the "stuff" that you mention (trading goals, risk management strategies, mindset, experience, ...) matters.
     
    #17     Oct 22, 2023
    engineering and murray t turtle like this.
  8. %%
    Thanks for the link;
    I remember rereading a lot of it/good read .
    Even though 2023 is almost over;
    top 10 stocks in SPY ,QQQ are over+ well over $100.[Could be why IBKR + SCHW.... sells ''stock slices''{ fractional shares}]
    Of course, many have made fortunes selling stuff under $100, well under $100.:caution::caution:
     
    #18     Dec 28, 2023
    capitalC likes this.
  9. capitalC

    capitalC


    Old thread I know, but thanks for sharing this. Very interesting!
     
    #19     Apr 17, 2024
    murray t turtle likes this.