Impossible to find a decent online brokerage in Canada

Quote from Canoe007:

Attached is the fee comparison from 100 through 1,000 shares, and amounts above. I hope I did the math right.
For example, IB on TSX is $1 for 100 shares, QT is $5.30.
At 1000 shares, IB is $10, QT is $13.45.
At 10,000 shares, IB is $100, QT is $44.95; more than double.
At 50,000 shares, IB is $500, QT is $184.95; nearly triple.

The middle of the $5 to $10 range I want to trade is $7.50.
My most recent test came out as an entry order, 37 reversal double orders, an exit order. So if a position/entry is 50,000 shares, that would be orders totaling: 50,000 + (37 * 50,000 *2) + 50,000 = 3.8 million shares.
I'd like to get the reversals down to the 20 a day range, so that would be 2 million shares a day?
It's always buying the Best Ask and selling the Best Bid.

So def, could you to the math (or point me to a tool to do so) for IB's Cost+ pricing for:
  • Toronto Stock Exchange (TSX)
  • Stock price of $7.50 CAD
  • 3.8 million shares a day, for 20 days a month = 76 million shares a month
  • and for 40 million shares a month

Thanks,
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I'm still not convinced you'll get all of your size done in one trade but cost plus is:
http://www.interactivebrokers.com/en/p.php?f=commission
and look under the stocks-> cost plus tab
the rebates and/or fees vary by trading venue. In Canada we route to Alpha, CHI-X, Omega, Pure, TSX and TCS Venture. So execution quality will surely be a major factor to consider as well (I'm not sure about Canadian stats but our audited price improvement in the US is .28 cents per 100 shares better than the industry average. Let's just say some of the firms offering flat rates and selling your order flow to others may not have obtaining the best fills for you as their goal).


Cost Plus
Volume (per month) IB Commission per Share US Stocks, Canadian Stocks
<=300,000 Shares USD0.0035 CAD0.008
300,001-3,000,000 Shares USD0.002 CAD0.005
3,000,001-20,000,000 Shares USD0.0015 CAD0.004
>20,000,000 Shares USD0.001 CAD0.003
 
Thank you for your reply.


Quote from def:
... I'm not sure about Canadian stats but our audited price improvement in the US is .28 cents per 100 shares better than the industry average. ...
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My first hand experience I gave above was IB on NASDAQ.

Quote from def:
So execution quality will surely be a major factor to consider as well ... Let's just say some of the firms offering flat rates and selling your order flow to others may not have obtaining the best fills for you as their goal).
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Exactly why I left my first broker after some months of slow execution and almost always poor fills. When I flew to Toronto to demo their DAT, they couldn't get the features to work. Then they discovered that someone internal had permanently disabled the very features (dome view/price ladder) that I wanted on the DAT. WTF.

Quote from def:
... look under the stocks-> cost plus tab
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Thank you. I missed that little tab.
I had found the examples for the U.S. market.

Quote from def:

Cost Plus
Volume (per month) IB Commission per Share US Stocks, Canadian Stocks
<=300,000 Shares USD0.0035 CAD0.008
300,001-3,000,000 Shares USD0.002 CAD0.005
3,000,001-20,000,000 Shares USD0.0015 CAD0.004
>20,000,000 Shares USD0.001 CAD0.003
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Thank you.
Now all I have to do is work out the CAD version of the USD example.
 
Cost+ is interesting.

If I've done the math right for the TSX.
When removing liquidity (for the combination of IB commission and ECN @ 0.0035 per share):
- For the first 300,000, it's 15% more than cent-per-share.
- For the rest of 3M, it's a 15% discount.
- For the balance of 20M it's a 25% discount.
- Beyond that, it's a 35% discount.

On 40M a month, saves $116K CAD.
Per shares comes out at 0.0071 CAD.

That's just counting IB commission and ECN 0.0035 per share. I don't know what other ECN fees there may be.
 
Quote from bundlemaker:

I too would like to know how I've been getting ripped off by IB, being a client of their's for the better part of 10 years.
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Different styles of trading = different fee structures are better.

IB beats so many at the order size most people trade at.
Larger orders, other brokers charge less, but do you pay less for the shares you buy if the broker sells the order, or fills poorly internally, or delays before sending it to market?

The the quantities most people trade in, by order and total for month, IB's Cost+ would cost you 1.15 cents per share, instead of their flat rate 1 cent per share. IB's cent per shares beats most broker's order fees, and gets better fills.

The answer is in the details. Do the math for your order size range, and your monthly volume.

As def points out, what I intend to trade is unusual. I can pay less in fees at QT, but what will I end up paying as a final total price for, say, 10,000 shares? For $50,000 shares? Saving $300 on commission sounds great, but not if it costs me $500, $1000 or $1500 in slippage. (that or worse at the pure fixed flat rate broker)
 
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