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Hi, does anyone know where I can find really cheap commission to scalp AAPL with? I'm using limit orders only. Right now, I am thinking of using IB. Their minimum commission is 0.70 per trade. Plus the sell side of the order is charged 0.0000192 * $400 * 100 shares = almost another dollar. That's over $2 per round turn.
This means I have to make 2 ticks on 100 shares just to cover the commission. Compare this to futures or FX where commission is much smaller in comparison to a tick.
Thanks
Can you help answer these questions from other members on NexusFi?
Take a look at Echotrade. When I first left the floor I traded AAPL and GOOG exclusively. I had 30-1 leverage, the cheapest rates on the street, and still averaged $4000 per day in juice. I would imagine liquidity rebates are greater now, but futures rules, imo.
I trade stocks everyday using IB's flat rate commissions. 50 cents per 100 shares. $1 minimum. In other words... commissions are the same ($1) for 100 or 200 shares.
If you're going to be trading large volume they have another plan that's even cheaper.
Thanks tigertrader, I sent them an email. It looks like I need a series 7 to trade with them. BTW, I'm just curious, how many trades per day were you taking?
Thanks mRoss21. Do you know what IB charges you if you put in an order for 200 shares and they get filled as 2 trades of 100?
The flat rate might be an cheaper option then the "Cost Plus" plan. The 0.0000192*share cost really makes it not that good of a deal for expensive stocks, where as cheaper stocks, like MSFT, won't be affected by it.
If you don't change the original order you'll only be charged one commission of $1 total for both fills. If you change the second 100 shares to try and be filled at a different price, or change it to a market order, you will be charged another commission.
If you want to trade stock, it doesn't hurt to have a 55, 63, and a 7. It may help you with your negotiations for higher leverage and lower rates.
When I was at Echo, I traded relatively large size. My unit for AAPL was 5000 shares and my unit for GOOG was 2500 shares, and I would often have 3-5 units of each stock, in play. I also traded the Q's, often spreading them against the aforementioned stocks, and also traded around my position in CME. I eventually liquidated my CME position in the mid 600's, and became involved in private equity and venture capital. Unfortunately, that was about a year before the sub-prime crisis hit. The experience cost me a bundle, but taught me a lot. Don't take anything at face value, and if it looks too good to be true, it probably is. It pays to keep this in mind when trading. When a ‘trend’ is obvious, there are few people left to join it, and there is probably more profit in going the other way... Remember, if the enemy is in range, so are you. Don’t think you can compete against the smartest minds using the best technology with a little trend line, moving average, and textbook cliche. Or as MacArthur said,‘Whoever said the pen is mightier than the sword, obviously never encountered automatic weapons.’ Do not do what everyone else is fond of doing. Let them do it far away from you and profit from their mistakes. ‘You, you, and you … Panic. The rest of you, come with me.’ Traders who always need action and do not understand that the odds do not always favour their participation will end up being given something unpleasant to do - tending to bad trades. Never tell the Platoon Sergeant you have nothing to do.
Once you intimately understand market structure, yourself, your abilities, and trust in your risk management there is nothing to fear from trading.
