CyberTrader new commissions Jul 24th
- Thread starter fleance
- Start date
mk: How is that you can have been trading for several years, post to all these sites, and yet have no idea that your volume level is vastly greater than 95-99% of all working traders?
Perhaps you only post, and never read?
IB was the first broker to create a commission schedule that gave the average trader a fair shot at the markets, primarily because of the unprecedented $1 minimum.
The "dirty little secret" of most day-trading firms that popped up in the 90s was that almost all traders went broke in a few months, and the brokers felt they had to get as much as they could from those traders before the inevitable occurred.
IB decided it might be better in the long run to give the retail trader an even break, thereby creating a self-sustaining customer base of profitable traders that could continue to grow (and pay commissions) every month.
IB continues to thrive, while many of those other firms have gone bust (or close to it). While they are not the cheapest any more, they are not far from it, still a great place for a newbie to learn his craft, and, for some, the best place to remain.
Perhaps you only post, and never read?
IB was the first broker to create a commission schedule that gave the average trader a fair shot at the markets, primarily because of the unprecedented $1 minimum.
The "dirty little secret" of most day-trading firms that popped up in the 90s was that almost all traders went broke in a few months, and the brokers felt they had to get as much as they could from those traders before the inevitable occurred.
IB decided it might be better in the long run to give the retail trader an even break, thereby creating a self-sustaining customer base of profitable traders that could continue to grow (and pay commissions) every month.
IB continues to thrive, while many of those other firms have gone bust (or close to it). While they are not the cheapest any more, they are not far from it, still a great place for a newbie to learn his craft, and, for some, the best place to remain.
I agree with the 'free trades' aspect. Gotta watch the lure of "First 25 Trades Free". Other brokers offer the same. The fact is, if you're an active trader, the offer can be used up in less than a week, or even a day. After that, full-on commissions and fee schedule. In fact, if I'm not mistaken, the 'free trades' offer is for the standard commission only ($7, 9.95, 10.95, etc.) and excludes pass-thru, ECN, SEC, data, and software FEES. Brokers get paid one way or the other.
Oh yeah, brokers like FreeTrade, aren't free. Their money is made on fees mentioned above. The most hidden one is the 'rebate/remuneration/pass-thru/order flow' charges that are paid to the broker by the 'clearing house/market maker' off of the spread on YOUR order (Knight is a big one). Some as much as 0.04¢ PER SHARE. You never 'see' it. If your an intermediate or long-term trader, it really doesn't matter. If you're an active day trader, well....add it up.
Almost all NON-Direct-Access brokers do this: Scottrade, Ameritrade, Brown, Freetrade, Empire, et al. Some Direct Access brokers grab a piece, too. Look at their SEC Rule 11Ac1-6 disclosure at their web site. They're required by law to display it. You may be surprised at what you find..............
OK, just for grins, here's a portion of SEC Rule 11Ac1 order flow disclosure for Scottrade, Freetrade (Ameritrade), and Brown & Co.:
http://www.tagaudit.com/RULE6MA/APR03/NITE2SSIC.PDF (Scott)
http://www.tagaudit.com/rule6.asp?date=APR03&user=ssic&showall=no&back=no&item=NASDAQ
http://www.advancedclearing.com/html/CLR2054.pdf (Am/Free)
http://www.brownco3.com (Brown)
(Sorry, at time of post, Brown site down for maintenance -- go to commissions, then search for SEC Rule 11Ac1-6)
Oh yeah, here's Cyber's:
http://www.cybertrader.com/support/routing_report.asp
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