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SEC fees on stock transctions going up.
- Thread starter seasideheights
- Start date
Quote from Anaconda:
Too dumb?
Wow, you are really in the dark about how it works.
Please do explain to me how it works.
"Harry Markopolos blew the whistle to the Securities and Exchange Commission about Bernard Madoff as early as 2000. Why were his warnings ignored? Steve Kroft has the interview."
http://www.cbsnews.com/video/watch/?id=4836927n
That is a pretty devastating increase for a small portion of the trading community.
Unfortunately, I happen to be in that small portion.
Unfortunately, I happen to be in that small portion.
Quote from krazyanyway:
That is a pretty devastating increase for a small portion of the trading community.
Unfortunately, I happen to be in that small portion.
How tiny must your margins be...
For this to be "devastating"?
I made 441 trades today...
With a total $$$ volume of $1,625,000...
That's 192,000 shares with average price about $8.50
My total commissions today will be about $650...
And this SEC tax increase adds about $32.50...
Increasing my transaction costs by about 5%.
For this to matter...
Your profit margins would have to be < 20-30%...
Which means you do not have a viable business model anyway.
If not this...
Something else will come along soon...
And put you out of business.
As a general rule of thumb for stock trading....
You better have margins of at least 40-50% minimum.
My margins are a LOT higher.
Quote from DeeDeeTwo:
How tiny must your margins be...
For this to be "devastating"?
I made 441 trades today...
With a total $$$ volume of $1,625,000...
That's 192,000 shares with average price about $8.50
My total commissions today will be about $650...
And this SEC tax increase adds about $32.50...
Increasing my transaction costs by about 5%.
For this to matter...
Your profit margins would have to be < 20-30%...
Which means you do not have a viable business model anyway.
If not this...
Something else will come along soon...
And put you out of business.
As a general rule of thumb for stock trading....
You better have margins of at least 40-50% minimum.
My margins are a LOT higher.
192,000 shares traded is not alot.
A 500% increase in SEC fees for large volume traders will amount to a few thousand dollars a month out of their pockets.
Quote from DeeDeeTwo:
How tiny must your margins be...
For this to be "devastating"?
I made 441 trades today...
With a total $$$ volume of $1,625,000...
That's 192,000 shares with average price about $8.50
My total commissions today will be about $650...
And this SEC tax increase adds about $32.50...
Increasing my transaction costs by about 5%.
For this to matter...
Your profit margins would have to be < 20-30%...
Which means you do not have a viable business model anyway.
If not this...
Something else will come along soon...
And put you out of business.
As a general rule of thumb for stock trading....
You better have margins of at least 40-50% minimum.
My margins are a LOT higher.
By devastating, I did not mean put me out of business. But 30k less per annum in my pockets isn't going to be unnoticed. No matter what my annual income is.