UNLIMITED trades for one monthly fee

N

newestmember

Why hasn't someone come up with an unlimited commission structure yet? Pay $5000/month and trade as much as you want.

Does it really cost IB/Tradestation a materially higher amount of money when you trade 1.5M shares a month versus 1.0M shares?

Why haven't commissions continued to fall? IB has been charging the same fees for years but it seems to me that the cost of providing those trades continues to fall (price of servers is cheaper, price of technology is cheaper etc etc etc)!
 
Quote from newestmember:

Why hasn't someone come up with an unlimited commission structure yet? Pay $5000/month and trade as much as you want.
More...

AB Watley had that exact deal a couple years ago but their software was garbage and we know where they ended up...
 
http://www.foliofn.com

Comes close to this threads request....500 window trades at $19.95/mo. No shorting yet. Also execution price very suspect.

From their site,

You can select one of our pre-packaged Folios and diversify instantly. You can customize it, or build your own Folio from scratch and trade commission-free, all from only $19.95 per month. Or, just buy or sell one stock at a time for $4.00 per trade. And, we'll help you choose.



Michael B.
 
Quote from newestmember:



Why haven't commissions continued to fall? IB has been charging the same fees for years but it seems to me that the cost of providing those trades continues to fall (price of servers is cheaper, price of technology is cheaper etc etc etc)!
More...

The race to zero cents per/shr is over .....sorry to brake it to you. With the "fall" of the prop firms (who initiated this comm war) there is no need for a well established house to lower its rates much lower than they are now. The big customers get soft dollars so they don`t mind paying up...hell most money managers still prefer to pay upwards of .05 to pay the bills at the end of the month(not day traders obviously) and the little guy (<15mm)well, they get the privilege of trading with a house they now is never going out of biz or gonna screw them. Frankly the attitude behind the scenes is "if you cant make money paying .01 then your going to fail anyway".

Regards
C.
 
Quote from newestmember:

Why haven't commissions continued to fall?
More...

Commissions have fallen ... a LOT! Go back to the mid to late 90's and it was common to pay $25/trade + ECN charges. I think INCA was .015 back then when I traded at All-Tech so trade 1000 through INCA and it was $40 total. Other ECN's were .005 (and often less liquid) to .01 with ISLD being the exception and was the least expensive way to go. Here we are 6 years later and I can trade 1000 shares for less than .01 without ECN charges. Even with the lesser costly ECN fees above I've seen a reduction of close to 70% per trade.
 
You must log in or register to reply here.
Back
Top