What broker should i trade through?

Discussion in 'Retail Brokers' started by candoo_fu, Feb 9, 2006.

  1. candoo_fu


    Sirius satalite(SIRI) is a stock that i have traded in the past and have been extremely successfull with. I would like to start trading SIRI again but im running into a problem. Since their stock price is so low i will get killed in commissions at Interactive brokers because of the .005 per share charge. Interactive brokers is really cheap for the large price stocks but not for the low ones. Anyone have any suggestions on who i should daytrade SIRI with?

  2. MBTrading has a per trade fee. So do many of the other brokers, ETrade, TD Waterhouse, Scottrade......
  3. candoo_fu


    I think if i used the max of .2% max at IB and lets say if i traded 10k shares i should have a commission of $20, right? If im wrong, please let me know and it will save me a lot of time trying to move accounts. I know etrade has a flat $9.99 for market orders regardless of share size order but they have intraday margin rules that i cant trade by. I am looking at Ameritrade and Schwab because of their flat fees but just wanted to get opinions on these two for daytrading purposes.

  4. alanm


    The commission is the lesser of $0.005/share or 0.2% of the gross trade value.

    10K shares of SIRI at 5.74 = $50740
    $50740 * 0.002 = $101.48

    10K shares * 0.005 = $50

    min($50.00, $101.48) = $50.00

    The cap only comes into play at:

    shares * price * 0.002 = shares * 0.005
    price = (shares * 0.005 / shares * 0.002)
    price = 2.50 or less
  5. candoo_fu


    Thanks for clearing that up Alanm
  6. Note that Schwab charges extra for orders larger than 1000 shares, unless you're a large customer (30 trades/quarter or $1M in the account).