What's a reasonable estimation of commission fee for ETF such as GLD?

Discussion in 'ETFs' started by mizhael, Jun 9, 2010.

  1. What's a reasonable estimation of commission fee for ETF such as GLD?

    Anybody knows what institutional big guys get from their brokerage for trading ETF such as GLD?
  2. 1) Very little per share. :)
    2) Some firms may let you trade for "free" if you permit them to front-run your trades. :(
  3. the gold is trustworthy investment and investing in the gold is simple and it could be marketed anywhere.
  4. It depends on what context you mean. I'm sure you can search the Prop Firms secion and find that some people claim to pay anywhere from $10/1000shs to $0.50.1000shs plus ECN & SEC fees.

    If by institutional you mean place a block order to a Prime Broker then the fees would be structured differently. Depending on the type of order (WIWV, VWAP, Limit/@price, MOC, etc.) you would most likely see a ticket charge which varies depending on your relationships as well as either a basis point fee/spread on the notional or a per share charge. Usually, but not always, ECN & SEC fees are paid by the Prime.

    Lastly, if by institutional you mean purchasing shares directly from the ETF as an Authorized Participant, the fee looks like its only $2k (usually there are hidden fees) which is pretty cheap IMHO.

    P27 of the prospecuts:

    Any trade placed at a Prime with a pre set price (even if simple MOC or VWAP) is not front running. The desks are kept seperate and the firm assumes the risk of the order/inventory until the order is executed.
  5. I don't think it is any different form any other stocks. IB treats them like stocks.