Commission costs for scaling out?

G

GotherL

Say if my broker charges .005 cents per share but a minimum of $1 commission is required per trade. If I bought 1000 shares of a company than scaled out 100x would I end up paying $100 or just $5 for 1000 shares total?
 
GotherL,

It is a little confusing the way you asked. Every time you hit "buy" or "sell", your broker will charge you $0.005/share, but each order require a min commissions of $1. So 100 shares is $1.00. 200 shares is $1. 300 shares is $1.50. Your position size is not relevant, only the order size for each order.

Does that help.

Bob
 
Pretty sure you'd pay $100 for your 100x10 trades. If u do this sort of thing often, you may want to looked at the tiered fee structure....$0.35 min commission (it appears you're using IB fixed)
 
Speaking of "scaling", an anecdote.

Years ago when I ran my mutual fund timing service, I had a customer service person at some fund tell me about one particular shareholder... who called up and "moved 1% of his money EVERY day". Like he was accomplishing something.??
 
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Commission rates can vary by brokerage and financial product. For stocks, there are two primary commission structures: per-trade (buffet) or per-share (ala-carte). The per-trade rates are also known as flat-rate commissions.These are flat-rate commissions that charge per trade, up to a specified maximum share size
 
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