Where to trade shares with no commissions ? Like Forex

Discussion in 'Retail Brokers' started by stvrtok, Jan 13, 2006.

  1. stvrtok


    Is it possible to trade shares (securities) like currencies in Forex ?Could any recommend good broker who offer this ?
    Thank you
  2. MTE


    CFDs are the only commission-free alternative, but they are not allowed in the US.
  3. The commission is only a small part of each trading transaction. The larger and less obvious cost is your bid ask spread.
  4. Commissions and spreads are a good way to measure the cost of trading FOREX thru ECN-type models, but not thru bucketshops.

    It is not possible to make a reasonable comparison between a multiple market-maker, fair ECN model, like Interactive Brokers, against the single-market maker, bucketshop model, by looking at spreads and commissions. This is because bucketshops display spreads which deceptively make trading look much less expensive than it really is at a bucketshop. Spreads don't include all the extra hidden costs of bucketshop trading, which include things like shading, individualized pricing, re-quoting, freezing, stop-running, slippage, manual-quoting, excessive platform failures during critical statistical releases, anti-arbitrage rules, anti-scalping rules, lack of deposit insurance, unfair interest rate policies, trade-busting, etc., etc., etc.

    Neither myself, nor the various IB employees who promote IB's fair ECN model, nor the various experienced EliteTrader traders who agree with us about the ECN model, make any effort to disguise our identities or are motives. But much of the information posted on EliteTrader, in favor of bucketshops, comes from bucketshop employees who pretend to be satisfied bucketshop customers, or newbies asking questions to provide a setup for response by other bucketshop employees also speaking through concealed identities. IB has a long history of honesty and integrity in its marketing, while many bucketshops have been fined or closed for cheating traders in both actual trades and in fraudulent advertising and marketing; and some of them have been proven to use criminals, convicted felons, and people banned from the futures industry for previous regulatory violations.

    I don't think you can find a way to trade securities "commission-free", but if you do find one, you should walk away from it. Any arrangement involving "commission-free" trading means that you will be paying somebody in some other way, to compensate for trading costs, but that your payments will be camouflaged in order to deceive you. You should willingly and gladly pay reasonably priced commissions, so that you can rely on your broker, in exchange for commissions, to help you get the best price and to help you win. If you aren't paying commissions to an honest broker, then you don't have a broker who is on your side. It means your broker is trying to give you the worst price, and to cheat you. "Commission-free" trading is basically a scam. It is widely promoted in FX, because FX is essentially unregulated. You don't see it promoted for securities trading, because securities brokers are far more tightly regulated, so that this type of scammery is just not seen in securities trading.

    Commissions are a good thing, which you need to pay in order to trade. Commissions are what you pay for an honest broker to be on your side, and this is essential for trading.
  5. I should add that IB's forex system is ECN-like, but is not a true ECN. It is not a true ECN, because the market-makers are not required to honor their quotes.