Years ago, when stock was traded through a full service broker, I walked into an AG Edwards office and bought 100 shares of PepsoCO. It was trading for about $28. When I bought it, I paid about $30 plus $100 commission. It went to $35 and I heard that the market was going to correct itself. I decided to get out. I get there and it was trading at $32. I said sell and a moment later I got about $30. I think my broker made $200 in commission and about $400 in mark-up. I now want to try day trading. It looks like some online firms use fancy wording for mark-up. I want to pay a simple fee and no mark-up. Is that such a thing? I do not have enough money to move the market.
In an ironic way you did move the market in the past which is the stock of the broker whose commission and markup you paid. ;-)
How many years ago was this? Fees have come way down. To buy 100 shares of PEP at Interactive Brokers will cost you about $1 in commission. To sell these same shares will also cost you about $1 plus a nominal fee from the SEC (about $0.05). Round trip will be just over $2.
Probably in the early 90s. Before the Internet, you literally had to call your broker or, as he did, visit their office. But still, that broker literally ripped him off. I'm surprised he didn't protest.
Fees like that no longer exist. Just a rusty memory of the past. (Maybe in some crypto exchanges it's still there.)
But of course spreads still do exist. And even with decimalization, spreads can still be a significant cost and drag on profits. The OP, like many new to trading, may not take the time to calculate all the costs he'll be facing.
%% PLUS slippage\ may not be about -7% in ; and - 7% out\ like his old broker. Actually the way PEP is dropping below50 day moving average\ may get a great fill; especially since so many are selling it this year. Good long term uptrend.
No fees or commissions on regular day trades. They might take a pip to cover transmissions, it's so small that you won't even notice it. If you haven't been trading in awhile, it will probably take you some time to learn things, so I suggest you read a couple of day trading books. You can practice on a simulator if you want to get a feel for it before using real money. And then open your broker account with a reputable company like Fidelity or E*Trade. Try to get started right away, it's fun! Good Luck PaulTrader!!!
Especially with bucket shops. While the IBKR puts a warning on buy limit orders that are 4% above the market, other bucket shops will not fill your orders 5% above the market. Day & night. ,,Zero commisions"