New Strategies for Zero-Commissh Day Trading - Ideas?
- Thread starter KCalhoun
- Start date
Broker - Fidelity (using their router). This is the only CF broker that claims they are not doing POF. Fills are fast, & so far I have been profitable right out of the gate, only placed a few orders.
Back in the 90's you could put in an order on a liquid stock to buy 1k-10k shares and not worry about getting plundered like you do these days by the HFTs. The trade off was the commissions were very expensive - $19 when I started out.
Being able to slice orders into smaller size at no cost puts you on a more level playing field - I see this as a big advantage since the fills have been good so far.
Back in the 90's you could put in an order on a liquid stock to buy 1k-10k shares and not worry about getting plundered like you do these days by the HFTs. The trade off was the commissions were very expensive - $19 when I started out.
Being able to slice orders into smaller size at no cost puts you on a more level playing field - I see this as a big advantage since the fills have been good so far.
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I would disagree with your premise that, "it cost nothing to trade stocks with many brokers." True - there are no commissions upfront, but there are still costs associated with trading (slippage, bid-ask spread, HFT, routing). The reduction in commissions will likely result in a proportional increase in the other areas.
More generally, a good rule of thumb to remember: there is no such thing as a free lunch. The reduced commissions are made up in other ways by the firm. They're not in business strictly for their own health.
Also well to note that trading frequency tends to hurt long-term performance for most systems.
Given that, I see no reason to modifying my trading.
But you still need to cough up exchange fees and what not, right? If I'm, say, trading 10,000 shares of stock, how much is that?