Inside Look at Rates Charged

Quote from Steve Dillinger:

Wow. You are right. I missed that one. $0.20 per thousand. Now thats a good rate.

Thanks for the catch.
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So you know, inside scoop on this is that Tuco never actually extended a per share rate that low, but had a very large lot trader on a per ticket basis. They had to work out a special deal with the clearing firm to accomodate him but his volume was high enough to make it worth it (20-30 mil shs a month). So he would pay the same amount per trade no matter how many shares he did. His commission on a trade would be the same whether he did 100 shares or 100K shares on the trade, although he typically never did a trade less than 30K shares. I won't go into the specifics of how he traded but some of you know how you can do size like this.

Some of the trades were 100K lots which would average out to an extremely low per share rate on those trades. A few clearing firms still practice a grey area in clearing (which regulators are trying to stop) called 'bunching the trades' where they report all the buying and selling in one security for the day as one massive trade in the clearing system to bring the costs down for ticket charges. Just an FYI.
 
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