Comparison of Retail brokers and Prop firms

T

tripleE

If I trade 20,000 shares of a stock per trade, I will trade with TDAmeritrade which has a fixed commission rate, not a prop firm which charges more commission with more shares traded.

But if I trade 200 shares of a stock per trade, I will trade with a prop firm, not TDAmeritrade.

What do you think?
 
Also important is the stock price and where listed. There may be a big surprise if those 20K shares are less than 2 bucks and or not listed on a regulated "exchange". On the inverse, for your 200 shares of unknown price and venue example, minimum ticket charges may apply. You must read the fine prints.
 
Some retail firms charge extra for orders over 1,000 shares or to trade stocks are under $2, OTC, etc. ex: $9 per trade, with an additional .01 per share for any share amount over 1000 or stock priced under $2
 
Quote from 6pst6:

Some retail firms charge extra for orders over 1,000 shares or to trade stocks are under $2, OTC, etc. ex: $9 per trade, with an additional .01 per share for any share amount over 1000 or stock priced under $2
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good to know, thanks.

But a few major retail brokers don't play that kind of tricks, do they?

I know Scottrade add a few cents to their advertised "$7" commission. Clearly, Scottrade has been doing false advertising all the time.
 
Quote from tripleE:

good to know, thanks.

But a few major retail brokers don't play that kind of tricks, do they?

I know Scottrade add a few cents to their advertised "$7" commission. Clearly, Scottrade has been doing false advertising all the time.
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Correct, not all retail brokers do it. I know Scottrade and Fidelity do. I don't think TDAmeritrade does, but you would have to check to make sure.

edit: Another thing you might want to figure into your cost is the fills you're getting.
 
Quote from 6pst6:



Another thing you might want to figure into your cost is the fills you're getting.
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That happens to be the most outrageous thing a retail broker can do to a trader. I traded with Scottrade for some time, from time to time it held my market orders for up to 3 minutes. Yes, anywhere from 1 second to 3 minutes!

During the fast moving period, that kind of fill kills. That's why I will never trade with Scottrade again, even if they don't charge commission.

IB has been solidly good in execution. But its stocks commission has the same rate of a prop firm=by the number of shares traded.
 
It depends how often you trade. If you are a very active trader than IB is a good choice. If not, then go for <a href="http://www.brokerage-review.com/stock-broker-reviews/zecco-review.aspx">Zecco</a> or <a href="http://www.brokerage-review.com/stock-broker-reviews/optionshouse-review.aspx">Optionshouse</a>.
 
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