discount brokerage business

[Math_Wiz]

Unless I'm seeing it wrong, If a daytrader buys SPY at $300, he has to sell at $301.50 just to break even (assuming the 0.5% tax goes into effect).

 

[newwurldmn]

Potentially you kill the bots and the hft firms. That could mean better real liquidity and less fragmentation of markets. I'd pay up for that.

Plus a lot of modern day trading strategies (by individuals or hft) is about front running real money traders.

 

[zdreg]

lol. it wont be set up like that and if it kills daytrading...who cares

You have the numbers. You are in a state of denial That it is not a good place to be in assuming you are a trader and not an investor.

 

[REDP1800]

You have the numbers. You are in a state of denial That it is not a good place to be in assuming you are a trader and not an investor.

lmao. bait talk. state of denial. lmao. if i have to make more to break even then i hold longer which has a net positive erfect. retail way traders are maybe max..10% of volume..nothing.

 

[kj5159]

The whole discount model won't go poof overnight. What you're not considering is that if everyone's costs will increase then nobody has an advantage or disadvantage relative to other firms because of the tax and they will all factor the additional cost into their pricing. The demand for online brokerage services is very price inelastic for multiple reasons especially based on where the price of trading is right now.