No Commission Trading

[noddyboy]

How does this work? There are SEC fees that have to be paid, and no one can avoid that. So they will lose money.

 

[murray t turtle]

Me and my family & friends follow the same internal bot, manually trading/testing a few strategies, and sometimes they’ve got better fills (or faster) via Robinhood than I’ve got with IB. Sometimes I didn’t get a fill at all when the price ran away, while they were able to grab a few shares.
Of course this is subjective because we all place orders differently, while I never notice when I get the best fills or why/how they’re better. It’s just 2 or 3 times when i was surprised that for some reason their fills on Robinhood were clearly better, possibly due to Robinhood’s or Citadel’s internal inventory. At least it made me think that fills may not be so bad with free commissions.
On another hand, IB may be better than most brokers with shorting hard-to-borrow stocks (while Robinhood doesn’t support shorting at all), as most of my short orders do go through at IB without any specific locate fees or requirements, even though.sometimes i have to wait a few hours for other shorts to blow up and release some shares before some of my orders go through. (I usually short a few $0.50-$5 stocks per day)
But IB’s shorting ability may decline when traders move to other brokerages, even though hard-to-borrow locate fees and short %interest rates may be one of remaining opportunities for brokers to make money on.

%%
NO wonder, penny stocks made T Syles rich as a college kid.And if i had to trade penny stocks college could be a good time to do it. But prefer to pick a up a penny on main street, NOT Wall Street LOL.............................................................................,

 

[spindr0]

A critical question is how much emphasis we can put on IB's claim that they improve price execution by 0.0043 as stated above. I believe Ameritrade claim they improve price execution as well. Let me look into that.

Thanks for your feedback.

I've been with IB for 20 years. I place my trades and I get my fills. I never looked further than that so I know nothing about the inner workings of ECNs and the underpinnings. With that in mind, I have read comments here and there that orders sent PFOF results in poorer fills. Is that really possible with NBBO? Is this a question of the fraction of a cent that you mentioned or is there a possibility of really bad fills?

 

[spindr0]

The same question was also asked in one of the other threads that talk about this new IBKR offer (and other brokers which have followed suit). I guess we'll have to wait until someone runs the same trades in both IBKR accounts (Lite and Pro) and reports the differences in fills they get. Only by then will we have an indication how much the customer is paying for commission-free trading.

I wonder if someone is actually going to take the time to run the same trades sumultaneously. And even if done, how do you know that the fill on any trade would have been better or worse at any given moment in time? Liquidity changes and the first order received gets the goose. The second one may or may not.

 

[murray t turtle]

I wonder if someone is actually going to take the time to run the same trades sumultaneously. And even if done, how do you know that the fill on any trade would have been better or worse at any given moment in time? Liquidity changes and the first order received gets the goose. The second one may or may not.

%% Good points;
You dont really-except over period of time.One elite trader whined about his fill on penny stocks; but i would NOT blame any broker or any but myself for that .
As you implied, on a small sample of fills means nothing -you could get in a short covering rally, rate hike or rate cut + may get rooked reguardless, on small sample. i use common sense; never did fund my We Bull account[me bull, 2] they did not have the bid price....I may do that later................................................................................................., I liked IBKR ,even though thier chart volume was persistently low, but even they noted ''have 2 brokers''

 

[murray t turtle]

How does this work? There are SEC fees that have to be paid, and no one can avoid that. So they will lose money.

%%
Last time i read that; you/we pay SEC fees. BUT when was the last time ANY business paid your sales tax /SEC fee/exchange fee /property tax??????????????????????????[Food coupons the same way. Even the ''free'' ETFs , some slap a fee if not held for 30 days; i guess they are afraid of some traders doing something @ same time ,LOL??,

 

[Overnight]

They will make it up somewhere.

Zero risk $$$. It is all free money. ZERO RISK!

HI Rick, I'm down 300 points. How are you doing? Remember when you typed recently that it does not matter where you buy, the market will make you whole again? How you feeling now about that angle?

 

[spindr0]

Sorry for the naive question but is Payment For Order Flow the same as Maker/Taker fees? Or are they separate entities?

 

[murray t turtle]

Zero risk $$$. It is all free money. ZERO RISK!

HI Rick, I'm down 300 points. How are you doing? Remember when you typed recently that it does not matter where you buy, the market will make you whole again? How you feeling now about that angle?

%%
LOL; '' does not matter where you buy, market will make you whole'' Maybe true in a uptrending bullmarket, QQQ, SPY.....; but try that with bankrupt DAL, AMR, LEH,TSLA/bear market+ get killed without a selling plan. I'm still trying to figure out WHY = SCHW is waiting 'till OCT 7 for free commissions???????????????????????????????????????????? Maybe partly because they own a bank................... + stock commissions dont mean as much to them as US [ LOL],