Does the rebate for limit orders on nasdaq just serve to decrease the execution fee, or is it actually a rebate and no fee?
rebates for limit orders on nasdaq
- Thread starter stochastix
- Start date
Robert Morse
Sponsor
Your limit order must add liquidity to get the rebate of $0.002/share. If your limit order takes liquidity there is a charge of $0.003/share. In addition, there will be reg fees and commissions. The credit offsets any other fees. If your credit is higher than the charges, you keep the balance. E.G. At Lightspeed, if you choose the per trade rate of $4.50/Trade and enter orders to add liquidity on ECNs that pay, you can get paid to trade with larger orders. E.g. Buy 5000 XYZ on ARCA adding. Cost $4.50, rebate $10.00 for a net credit of $5.50 (not including reg fees).
Can a Ligthspeed customer opt for the fixed per trade fee and still have the option to direct his orders to the exchange of his choice???
Robert Morse
Sponsor
luisHK, Yes. Our starting rate is either $4.50/Trade (Max order size of 10,000 shares) or $0.0045/share, min $1 on Lightspeed Sterling Trader Pro or Silexx (PMA only). On Realtick the standard minimum is $3 but the same choices of per share or per trade. Then you choose your route and are subject to the maker/taker debits or credits. https://www.lightspeed.com/pricing/routing-fees/. We offer volume discounts.
https://www.lightspeed.com/pricing/commission/. And yes, we have a large number of foreign accounts.
https://www.lightspeed.com/pricing/commission/. And yes, we have a large number of foreign accounts.
yes i meant liquidity providing limit orders not marketable limit orders. thank you for clearing that up Rob
Hi Robert,
Good to have you back. You lift the quality of the discussion.
Do you know whether participating in the opening auction/cross on NASDAQ is considered taking liquidity and thus incurs a charge of USD 0.003 per share = USD 30 for 10,000 shares + commission?
Robert Morse
Sponsor
Maverick2608-NASDAQ charges a flat fee for the OPEN and CLOSE. There is no rebate. The charge is $0.0015/share.
@Robert Morse would this pricing function be accurate ? not looking for flat fee or large order volumes
public double getLimitOrderCost(int shares, Side side)
{
int absoluteShareCount = abs(shares);
double value = midPrice * absoluteShareCount;
double cap = value * 0.01;
double finraTradingActivityTax = finraTradingActivityFee * absoluteShareCount + nsccFee;
double finraSellFee = side.equals(Side.Sell) ? (finraSellTransactionFee) : 0;
double taxesFeesAndCommissions = finraTradingActivityTax
+ (perShareCost + finraSellFee - perShareRebate) * absoluteShareCount;
double clearingAndExecutionCosts = min(cap, taxesFeesAndCommissions);
return clearingAndExecutionCosts;
}
/**
* max 1% of trade value
*/
public double commission = 0.0025;
/**
* NSCC, DTC Fees: National Securities Clearing Corporation (NSCC) is a
* subsidiary of Depository Trust & Clearing Corporation (DTCC) that provides
* centralized clearing, risk management, information and settlement services to
* the financial industry.
*/
public double clearingFee = 0.00020;
/* per execution */
public double nsccFee = 0.0055;
/**
* Transaction fees are only charged for sell orders.
*/
public double finraSellTransactionFee = 0.0000207;
/**
* Consists of broker commission and clearing fees
*/
public double perShareCost = commission + clearingFee;
/**
* From https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2:
*/
public double perShareRebate = 0.0015; // tape C nasdaq
/**
* · FINRA Transaction Activity Fee (TAF) = $0.000119 per share on SELLS with a
* min of $0.01 and max of $5.95
*/
public double finraTradingActivityFee = 0.000119; // times quantity sold, ,max of 5.95
/**
* SEC Section 31 fee = $20.70 per million dollars for covered sales (as of
* Trade Date 4/12/19 for Settle Date 4/16/19).
*/
public double secSection31Fee = 20.70;
public double getLimitOrderCost(int shares, Side side)
{
int absoluteShareCount = abs(shares);
double value = midPrice * absoluteShareCount;
double cap = value * 0.01;
double finraTradingActivityTax = finraTradingActivityFee * absoluteShareCount + nsccFee;
double finraSellFee = side.equals(Side.Sell) ? (finraSellTransactionFee) : 0;
double taxesFeesAndCommissions = finraTradingActivityTax
+ (perShareCost + finraSellFee - perShareRebate) * absoluteShareCount;
double clearingAndExecutionCosts = min(cap, taxesFeesAndCommissions);
return clearingAndExecutionCosts;
}
/**
* max 1% of trade value
*/
public double commission = 0.0025;
/**
* NSCC, DTC Fees: National Securities Clearing Corporation (NSCC) is a
* subsidiary of Depository Trust & Clearing Corporation (DTCC) that provides
* centralized clearing, risk management, information and settlement services to
* the financial industry.
*/
public double clearingFee = 0.00020;
/* per execution */
public double nsccFee = 0.0055;
/**
* Transaction fees are only charged for sell orders.
*/
public double finraSellTransactionFee = 0.0000207;
/**
* Consists of broker commission and clearing fees
*/
public double perShareCost = commission + clearingFee;
/**
* From https://www.nasdaqtrader.com/Trader.aspx?id=PriceListTrading2:
*/
public double perShareRebate = 0.0015; // tape C nasdaq
/**
* · FINRA Transaction Activity Fee (TAF) = $0.000119 per share on SELLS with a
* min of $0.01 and max of $5.95
*/
public double finraTradingActivityFee = 0.000119; // times quantity sold, ,max of 5.95
/**
* SEC Section 31 fee = $20.70 per million dollars for covered sales (as of
* Trade Date 4/12/19 for Settle Date 4/16/19).
*/
public double secSection31Fee = 20.70;
Last edited:
Robert Morse
Sponsor
That hurt my head to read. I have no idea if that is correct if you are looking for the total cost. You will have to pay your commissions rate per share or per trade, a routing fee if any, and SEC Section 31 and TAF on sell orders. The Reg fees change often.
Just think how it made my head feel writing it
. I think it's pretty close to correct. There is also a 0.0055 fee per execution for nscc fee?