Commissions!! Commissions!! Commissions!!

G

gimp570

I have been making money for over 3 years now, but lately I am BARELY braking even. I do around 2 millions shares a month all NYSE. What should I be paying for commissions?? Right now I seem to be just churning the heck out of myself and a reduction in commissions could be the answer for me to get through these tough times. I am paying .006 cents a share and $20 bullets per thousand. I have read that some people are getting less than .005 cents a share, but I am having trouble finding were this is available. Any help in this matter would be greatly appreciated.

Thanks

M
 
Quote from gimp570:

I have been making money for over 3 years now, but lately I am BARELY braking even. I do around 2 millions shares a month all NYSE. What should I be paying for commissions?? Right now I seem to be just churning the heck out of myself and a reduction in commissions could be the answer for me to get through these tough times. I am paying .006 cents a share and $20 bullets per thousand. I have read that some people are getting less than .005 cents a share, but I am having trouble finding were this is available. Any help in this matter would be greatly appreciated.

Thanks

M
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In order to get commissions lower you will likely need to hook in with a group or an office that has leveraged a deal off of their combined volume. If you have a 3 year track record and your own capital that shouldn't be a problem at all in this environment. If you are trading with an office that is doing big volume then you can take advantage of lower commissions that are offered to that group. The best rates seem to be with Andover or one of the groups clearing through them.

With regard to bullets, you should be able to cut costs there I would think for sure. Twenty bucks a thousand is literally double what I pay.

Good luck.
 
I just switched firms ( in fact I am still waiting for them to turn the account on perhaps tommorow) because their rates were lower than my old firm even though I owned the office. If you trade remote they have told me you can do better than 005.
 
Quote from Avalanche:




In order to get commissions lower you will likely need to hook in with a group or an office that has leveraged a deal off of their combined volume. If you have a 3 year track record and your own capital that shouldn't be a problem at all in this environment. If you are trading with an office that is doing big volume then you can take advantage of lower commissions that are offered to that group. The best rates seem to be with Andover or one of the groups clearing through them.

With regard to bullets, you should be able to cut costs there I would think for sure. Twenty bucks a thousand is literally double what I pay.

Good luck.
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deal directly with a firm. if you go through an LLC you will end up paying more because it's a middleman. Unless you form your own group, again, which again you basically DEAL DIRECT. dont go under any of the LLCs or groups if you want the best rates at the firm.

about your rates: you can get lower than .06 for your volume, .04-.05 is realistic.
your bullets: way lower, .01-.012.
firms you can find these are all posted on previous threads like 'commission bullet rates' etrade, andover, etc. that freetrade looks pretty good too.
 
Quote from sambatrade:



deal directly with a firm. if you go through an LLC you will end up paying more because it's a middleman. Unless you form your own group, again, which again you basically DEAL DIRECT. dont go under any of the LLCs or groups if you want the best rates at the firm.

about your rates: you can get lower than .06 for your volume, .04-.05 is realistic.
your bullets: way lower, .01-.012.
firms you can find these are all posted on previous threads like 'commission bullet rates' etrade, andover, etc. that freetrade looks pretty good too.
More...

Yes you are right that there will be another middle man if you go thru an LLC but many times, especially if you trade by yourself, you can get better deals going thru one of these sub-LLCs. First you can trade with less capital upfront but many times office managers or other in charge of branches will be impossible to deal with. They have an incentive to keep rates up themselves and in a lot of cases tend to be more inflexible with rates then LLC. Many times the office manager builds in a little spread for himself too so in sense you have another middle man when negociating with non-LLCs. Many of the traders I know get better deals from the LLCs then the traders who cut the deal with the firm plus they get to put less money up front.
 
Quote from cornholetrading:



Yes you are right that there will be another middle man if you go thru an LLC but many times, especially if you trade by yourself, you can get better deals going thru one of these sub-LLCs. First you can trade with less capital upfront but many times office managers or other in charge of branches will be impossible to deal with. They have an incentive to keep rates up themselves and in a lot of cases tend to be more inflexible with rates then LLC. Many times the office manager builds in a little spread for himself too so in sense you have another middle man when negociating with non-LLCs. Many of the traders I know get better deals from the LLCs then the traders who cut the deal with the firm plus they get to put less money up front.
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Agree, it is who is the middleman that matters ...
 
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