Okay, Very simply: (1)ARCA 20.50 (1)BATS 20.51 You send a BUY MKT order for 100 shares routed to BATS. 1) You order will go to ARCA. Now what are your fees for this transaction? A) Comissions + ECN fees of ARCA + Routing out fees of BATS B) Comissions + ECN fees of ARCA + Routing out fees of ARCA C) Comissions + ECN fees of BATS D) Comissions + Routing out fees of BATS E) None of the above
so... would you say, that if you are taking liquity, it'll be best to route to NYSE hit everything there (cause it's the cheapest), and only pay the Routing out fee.
Man, I don't know why people prefer trading with brokers that charge routing fees. But even if you do, it's a matter of a few cents here and there. If you have to penny pinch that bad, you need to develop a better trading style. Seriously, you can't survive in this business if your biggest problem is trying to decifer your commissions and routing fees.
Agreed. If you can't deal with sub-whole-cent commissions, you probably don't know how to trade. I usually pay $0.01 even with my per ticket schedule. I don't have to worry about that.
Makes a difference if you're doing 50 million volume a month. If I'm looking for the cheapest option, first I hit EdgeA if there's any shares available (is free), then I go for NYSE, then whatever.
Don't listen to these guys. It's important to know what you are paying, and when. I've paid almost $4k this month alone in ECN fees which is probably more than 95% of guys on ET make monthly.
Nonsense advice. I have a very competitive deal and on the year I'm up about 60% of my gross profit. If I paid an extra .0001 from a routing fee on all my shares traded suddenly my P/L on the year goes down by 25%. Maybe if you're a position trader or you hold for a few hours the routing fees matter LESS but even then - let's say you have a gross ratio of $3000 grossed per 100,000 shares traded - a .0003 routing fee is still going to be over 10% of your net. Now just imagine if you're a scalper... As far as why someone wuold trade with a broker that charges a routing fee, the broker doesn't charge a routing fee. The broker just passes on the fee from the ECN. Why people would trade with a broker that DOESN'T charge a routing fee is beyond me; if the broker isn't charging it you, you are in an all-in deal that is likely substantially worse than if you were getting your shares routed at cost and passed on to you with a smaller markup.