Wait, Scottrade vs. IB?

Discussion in 'Retail Brokers' started by 1a2b3cppp, Apr 27, 2011.

  1. Scottrade is $7 per trade.

    IB says $0.005 per share in the US.

    So does that mean Scottrade is cheaper once I start trading over 1,400 shares at a time?

    If I buy ETFs in 200 share lots, that would only cost me one dollar with IB?

    I am wondering what I am missing because Scottrade is not included on IB's "broker comparison" chart:


    But then I don't get it cuz it says 100 shares is $0.27:


    And on their "rates" page it says the minimum per order is $1.00.

    Can someone clear this up? I want the cheapest commissions possible. I pretty much only trade index ETFs (and their weighted counterparts). I'm currently with Scottrade but I'll change if I can get significantly cheaper commissions.
  2. Bob111


    clear up what? can't you calculate the difference yourself? we have no idea what you trade,what size,how often, adding liquidity\removing..there is literally 100's of questions\factors that might affect your results. and don't forget-you will get what you are paying. from my experience regardless to what you do-"cheapest" possible way is not usually the best way
  3. The contradictions mentioned in my post:

    So is it $1.00 or $0.27 per 100 shares?

    Also this:

  4. Their stock flat rate is $0.005/share with a $1 minimum transaction.
    So if you buy 50 shares you pay $1.
    If you buy 200, you pay $1.
    If you buy 300, you pay $1.50.
    There are other modifiers (if you use the API, etc), but that's the quick version.

    If you have a moderate sized account ($20-100k), do share sizes under 500 at a time or exit/enter in several steps, I don't see how the pricing structure at Scott-Trade/Fidelity, etc could be competitive.

    If you start swinging a big stick and do substantial volume, you'd probably benefit from their unbundled pricing structure. Their commissions page gives some examples so you can get an idea of the various methods.
  5. Bob111


    there two commissions plans in IB to begin with. flat rate and bundled(i guess they call it now cost plus). that would be your starting point
    the biggest difference between two firms would be direct access,routing options,API and many other things.
  6. I think the second chart represents the quality of execution on IB. You will do 27 cents better than some metric vs competitors who will fill you 3 cents worse.
  7. Bob111


    without looking into details-probably. from my experience it is not uncommon to receive slightly better execution than current NBBO via IB 'smart" if you buy at ask and sell at bid.
    can't compare between two,cause i trade small size,but a lot of executions. running same account with differenct systems on different PC's..all this not gonna work with scottrade..
  8. I am wondering what I am missing because Scottrade is not included on IB's "broker comparison" chart:
    look again
  9. Roark


    Even small sticks benefit from IB's unbundled pricing structure (cost plus as it's called now). With bundled, it's $1 for 200 shares. With cost plus, it has varied for me from $0.44 to $0.94 and has never been more than a buck.