TD Ameritrade stock price is down 21.63%

[lentus]

When he bought it at 25 in 2017, it sank at some point below 5 bucks. I doubt he held it.
The day Snapchat went public, the volume on Robinhood went up 50%.
It tells us exactly who are the demographics of the purchasers (average age of Robinhood users is very young).

The "revolution" of Robinhood was the phone app combined with no fees. Many think here they are pioneers of no commissions and they paved the way. That is not true. There were other attempts by companies like Zecco (bought by Ally) to provide zero cost, and that did not catch on because mobile trading was not as popular.
The demographics of account sizes are getting smaller and smaller, and "free" appeals to them.
The big brokers realized it as well, and they did their research what "free" seekers overlook in terms of cost, and that is where they would make their money. No free lunch. The above is my opinion.

OK, bro, you're next. Futures brokers will be commission free soon too. If stock guys can make enough off orderflow so can you.

 

[MattZ]

If stock guys can make enough off orderflow so can you.

The CME or any Futures exchange out there, does not compensate us brokers for order flow.

I am not sure where the direction of commissions is going from here, but most of the cost now goes to the exchnages and technology providers, not always the brokers.

Second, please do not forget the high leverage provided in Futures relative to the margin you post (not to mention the day trading margins).
The leverage provided in stock is very low, and the cost is pretty high. If you research the price for shares when it comes to leverage trading versus the notional amount you get in Futures, you will see that Futures are cheaper.

 

[Overnight]

OK, bro, you're next. Futures brokers will be commission free soon too. If stock guys can make enough off orderflow so can you.

The blowout that is going on with stock brokers like Schwab and TD Ameritrade will not hit Future brokers. There's no reason for it to. I'll stick with my current futures broker, and not flock to the nearest broker that can save me a few bux on a futures trade, par value. I simply cannot swing that size of a trade.

 

[lentus]

The CME or any Futures exchange out there, does not compensate us brokers for order flow.

I am not sure where the direction of commissions is going from here, but most of the cost now goes to the exchnages and technology providers, not always the brokers.

Second, please do not forget the high leverage provided in Futures relative to the margin you post (not to mention the day trading margins).
The leverage provided in stock is very low, and the cost is pretty high. If you research the price for shares when it comes to leverage trading versus the notional amount you get in Futures, you will see that Futures are cheaper.

so where do your orders go?

 

[MattZ]

so where do your orders go?

Our orders are DMA-Direct Market Access straight to the exchange. But, Futures exchanges are separate entities and are not connected to the stock exchnages.

 

[GRULSTMRNN]

Technically not straight, they first go through your pre-trade risk checks which I hope you guys employ. Sorry I am still not familiar whether you guys are an ib or an fcm.

Our orders are DMA-Direct Market Access straight to the exchange. But, Futures exchanges are separate entities and are not connected to the stock exchnages.

 

[heispark]

OK, bro, you're next. Futures brokers will be commission free soon too. If stock guys can make enough off orderflow so can you.

My broker AMP Futures charges me $0.75 ($0.25 commission + $0.5 clearing) per contract for /ES while Exchange+NFA fee is $1.2 ($1.18+$0.02). Frankly, I don't think they have much room to lower their fee. To reduce your trading cost further, you may want to consider achieve CME membership instead.

 

[lentus]

My broker AMP Futures charges me $0.75 ($0.25 commission + $0.5 clearing) per contract for /ES while Exchange+NFA fee is $1.2 ($1.18+$0.02). Frankly, I don't think they have much room to lower their fee. To reduce your trading cost further, you may want to consider achieve CME membership instead.

So I guess the execution model is different because retail stock brokers sell their order flow to HFTs.