If you use ECNs and MMs correctly, you can knock off .0022 to .0027 from your per share rate. Not passing thru rebates is a big downside to IB. Everyone should be able to negotiate pass thru ECN rebates with their broker. I'll give you my stats: I am retail and pay .004 +/- ECN rebates (Avg .002 Rebate) so I avg .002 - .0025 overall. Say you trade about 300k shares per month and make about 10k gross per month. At .01 you pay 3k (30% of your gross). At .005 you pay 1.5k (15% of your gross). At .002 you pay 600 (6% of your gross). It is a simple cost of doing buisness but anything over 15% is too high IMO.
Thanks Mike for the clarification. Which broker do you use? Can you recommend some good brokers you know of that provide ECN rebates? Thanks,
And not using them incorrectly can add a penny or more to your trade. That is SMART routing will most likely get you better fills and is most likely worth the extra .003 of a cent. Also not that IB doesn't charge SEC fees, has execellent interest and margin rates, doesn't charge for wires or have a software fee etc.
thats bullcrap def. not giving rebates is bs. most investors who trade only a few times a day use limits and are being nailed by ib. that means ib is getting the rebate so instead of costing me .008 with my rebate you're making 1.2 cent a share. and your 1 cent to begin with is robbery. your smart order routing is no better than doing market sdot or market arca to get a naz fill. how do you jsutify still charging 1 cetn a share when ecn fee's and the cost to do business has pl;ummetted. for gods sake even huge cyber trader owned by expensive sch charges .006 all in. your rates have been 1 cent for at least 4 years as others have plummetted. i pay .003 with a very rteputable vendor and get all my rebates and pay no software fee. i'm stunned anyone who does any vol would trade with ib. you're a good company nbo dout but your stock rates are way too high. the sec fee is less than 1/2 of 1/10th of a cent. if you scour this board you'll see many ib people are looking around as they fell 1 cent is way too expensive
Try to find better trades. Don't try to find better commissions. IB's fees are great. I, as an IB customer also love if IB can lower commissions but I guarantee you that you will not be able to get better commission than IB. I have got gray hairs by searching another broker that can even match IB. As def mentioned, you should consider everything as a package when you look for a broker. If any broker claims that he has better commission, I like to see it in their website. I don't like to see like " Give us a call and we will give you a better rate" You can not review or see loopholes everything in a phone call. Just ask them to post their rates on line. As a quiz for everyone please try to find another broker that: 1- has better rate or same margin rate as IB. 2- Better short list "posted" 3- No sec fees 4- Better interest rates on your cash and short position 5- No software fee 6- So clear on their commission rates I am positive you will fail
stockripper, maybe 1 cent IS on the high side, BUT that's only for the 1st 500 shares, then its 1/2 cent. So the volume guys are paying much closer to the 1/2 cent . And they save the SEC fee, and they pay even less than 1/2 cent on sub $2 stocks. So your rant is at the very least, incomplete.
how naive you are. i'm with a very large retail insured outfit and i pay .00225 a share. i pay no software fee's and no minimiums. example i can guy 200 ibm for 45 cents. i have no minimiums. the sec fee is nothing its less than .0005 a share. i have smart orders and use of sdot for all nyse. i get full rebates when i add liquidity. so if aapl is 52 x 52.02 and i buy it at 52 or 52.01 i get the .002 rebate and my commissions are free. lets say i do 50k a day vol i'll save .0085 on avg per share over ib or $450 per day. with ib you'll pay $500 for 50k. my avg will be .0015 after all rebates and paying liquidity or $75 per day. thats a savings of $8500 a month or $102k per year. thats huge. now thats doing big vol. but anyone out there can get .004 and still save huge. i'm an expert on commissions and company's. ib's a great outfit but they need to lower there commissions
and most people buy 500 or less shares. if one buys 1000 or more shares he's a fool to use ib. he can find flat rates for $5 or less for unlimited shares
dear mr stockripper sounds like an llc or prop deal having a retail / remote side? does your fim allow you to name the deal you mention? also does your firm have FX and futures trading round the clock ?