ECN Rebates

If you take out someone's order, you are taking liquidity, not adding, and you are charged the fee instead of earning the rebate. You only get the rebate when someone hits your order which is already on the book.

ISLD fees for OTC stocks are currently -.003 to take, +.002 to add, same prices for the other ECNs and Nasdaq.
 
I don't do the rebate trading but I have a friend who runs an office in Boca and that's all they do....They do pretty good now but the Supermontage and the SOES orders have hurt them....interesting though that a lot of the ecn;s that started this practice have either been sold or gone under
 
enjoy it while it lasts, i've heard that most of the ecn's are looking at getting rid of rebates altogether and going to a 0, 1 model (0 rebate, 1 to take)
 
Quote from canuck:

enjoy it while it lasts, i've heard that most of the ecn's are looking at getting rid of rebates altogether and going to a 0, 1 model (0 rebate, 1 to take)
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I heard it's actually the SEC who is looking to do away with rebates....I don;t think it can go away....how else would some of the ecn's get somebody to use them? There's a ECN in tampa that basically relies on the rebate program to stay afloat...there was one in Texas that did the same thing , but was closed by the sec....With INCA/ISLD/ ARCA/REDI eating all the volume, I would think the door to ecn rebates is wide open to some of the smaller guys
 
Quote from RedTrader:

Rebates are nice, but if they make difference in your execution decisions, then your in the wrong game
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Very true , but most of the guys trade soley for rebate...they are not concerned with where the stock is moving, as long as it is and they can tack 1/2 penny onto a 10k share order
 
RedTrader:

Why would you say that? Money is money, it doesn't matter if you make it by capturing rebates or by outsmarting the market. Don't you agree? I personally think that it's a losing battle to "predict" market movements. Sometimes you win, sometimes you lose. The rebates are a true "edge" and as it says at the bottom of my name "I trade the "edges". Just curious about the individuals that think it's going away, any time frame? Either the SEC or the ECNs doing away with it? Any idea when/if this might happen? Thanks for the replys! Neal.
 
I don't really want to argue about this. What works for you is great. I've been traidng for a long time and I think that its wise to not to throw money away if you don't have to, at the same time I would never threaten a good execution for the sake of $.002. Just a humble man's opinion.

I've had Insinet, Island, and Arca reps visit me in the last few weeks. There was no talk whatsoever of changing the rebate schedules.

In fact the Nasdaq is rolling out a rebate program for adding liquidity on Supermontage. FWIW
 
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