Commission/Transcation Fees

L

lsudaytrade

As we all know, total commission will be a lot higher for those that day trade than swing trade. I do both, with my swings lasting typically 2-3 days MAX.

About how much has some of the traders here forked out in commission thus far this year or avg a month?

Last two months i've made ~80 trades of 1000 share lots totaling close to $900(10.99/trade) in commission for the two months.

Been trading for about 6 months, so roughly 2.5-3K thus far this year in commission.


I really do need to change brokers. Using a different broker I would've save close to $300 in the two months alone.
 
You're right, commissions will kill you. It gets worse when you tend to overtrade.

However, it all depends on your trading style. I usually do not swing trade on non-trending markets. I prefer to only manage some core trades opened from lower levels, and only daytrade or scalp trade.

If you are going do daytrade or scalptrade, the $10.99 that you pay is a big no no. Switch to Interactive Brokers, or some other broker that offers a per share commission. Keep in mind that on a per share basis, it does not bold well to trade stocks below $10 or lots greater than 1200-1500 shares.

A lot of brokerage houses are still living in the past as far as commission goes. We now start to see an increased number of per share commission offered by some brokers. Noble trading now offers per share and per lot fees, so it bodes well for many trading styles.

In the future we will probably see a lot of consolidation and the extinction of a lot of dinosaur brokers that exploit clients on trading commissions.
 
Most of my trades are large cap stocks such at CAT, SLB, MRK, GM, etc.. at 1000 share lots. The commission per trade seems minute in comparisons to the gains/loss, but it sure does adds up in the overall scheme of things.

I'll probably switch to IB real shortly.
 
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