I agree with the sentiments expressed here by others. While you obviously want to reduce your fees as much as you can, realistically saving here and there thru rebates will do only so much. The focus should be on finding trades which give you a high profit to commission ratio. This is something which I learned from Tony Oz (he mentions that unless a scenario presents a 3:1 win:stop loss ratio he won't take it). As for brokers that provide pass thrus I made a post (look in the retail forum) a few days ago asking about pts. No one seems to be familiar with them or use them (or atleast willing to come forward). I think in keeping with IB's record and what's out there, no one should be surprised if they do cut their commissions again or offer ecn pass thrus. Its all about the competitive environment.
no i won't name the firm. i did months of research and spoke to at least 50 people hammering them down to get my deal. if the deal i had weren't meant for all they'd publish it on there web site. my pt in this discussion is for each person doing heavy vol with there own money to get out there and hammer brokers for a good deal. they're out there you just must find it
Did the deal include the stipulation that you never capitalize the first letter of a sentence? If so, I think a renegotiation is in order. BooYah
Stockripper, I think there is a contradiction in your story. You stated, at first, that your broker imposes no minimums on you. But then, in a later posting, you explain that your broker negotiated a better deal for you, than for its other customers, apparently because you do heavy volume. So you do have a de facto minimum volume requirement, which, if you did not meet, you would not get the deal. It also appears that your broker uses deceptive practices against its customers. Your broker conceals, from its other customers, the fact that it gives you such a good deal compared to the others. You are participating in this concealment, because it is in your financial interest to do so, so that you can continue to enjoy whatever benefits you receive from your broker. I wonder what other kinds of deception are employed by your broker. Would you agree that Interactive Brokers is superior, at least in the one area that they do not deceive some customers about the deals given to other customers?
Your numbers don't add up stockripper. Selling 100 IBM at $80 costs $0.33 SEC + $0.01 TAF, for a total of $0.0034 per share. Divide by two to recognize no fees on the buy, and you have $0.0017, not 0.0005. Look at GOOG and that number becomes $0.006/share. Not to mention you're talking about the best case, where you add liquidity for a NASDAQ stock and get the rebate. The worst case (for you) is much worse. Take 1000 GOOG and you pay $0.003 + $0.003 + $0.006 = $0.012 instead of $0.0075 at IB. As usual, it all depends on what and how you trade. FWIW, I'll bet that IB is a net payer of ECN charges, at least for their retail client base. All that aside, any business sets their prices based on what they want to make for their return on capital. If people don't like it, they can go elsewhere. If enough people don't like it, they drop their prices or find another business that pays a better return. It's a free and competitive market. That's how it's supposed to work. It's one thing to talk about where to find the best price, but in a free market, this contention that a business is evil and screwing you by charging a particular price to a non-captive client base is ludicrous.
jim rockford #1 i said no min's in commissions per trade not no min's in vol.#2 for you to call any broker deciveing is laughable. ib has deals with many people. call them up and say you're doing 500k a day. they'll go as low as .005 a share all in. i've clled them and i i've talked to many people on here who have deals with them. even def will tell you that. no trader doing 150k a day vol is going to pay 1 cent. hell fidelity sch cyber all will negotiate if you're doing big vol. alanm your sec example is for good and ib. hell goog's a $300 stock. most people trade stocks $50 or less were the sec fee is neglible. i agree if you pound goog all day ib's no sec fee is big. but i assure you few if any sit there all day and pound a $300 stock. hey as i said ib's agood company and if your happy stay
One of my brokers gives me the rebates when I provide liquidity. What I have found is that when I provide liquidity, I am more likely to be a looser because I did not get the trade I needed when I needed it. For me, the most important thing to determine is when and what direction a security is going, forget about the commissions, and hit the bid or offer that will get me going in the right direction or get me to "hell out". I look and wait for others to provide the liquidity that I need when I need to get on the right side of the trade as I need. I pay a bit moore for the commissions at IB and IB provides me the best transactions I can obtain in the market place. I look for better broker deals as this is why I opened an IB account. For now IB is the best for my trading of my brokerage accounts. The security of my account is also a big consideration and here again I like the way IB "runs their ship".
ok if i take liquidity all day long on the naz i'm at .00525. plus were you get screwed with all in at 1 cent is nyse. you're paying 1 cent were i pay .00225. i'm with a big comnpany retail that has sipc to 25 million. security of my funds is my #1 concern thats why i go big only. to sit here and argue that paying 1 cent vs .00225 is better is ridiculous. like i said i'm speaking for someone doing big vol
if we are giving deals that's news to me. I have not talked to any individuals who have special deals at IB. perhaps the confusion is that anyone doing 500K per day is mostly likely trading in a size that comes close to averaging .005 per share all in as posted on our site.