What is the best way to reduce the commission costs

S

StocksSniper

Hi there,

I've been trading for a little over two years now, and I realized that a big chuck of my gross profit goes to commissions.

As of today, for 2005 my commissions costs amount to 16% of my gross profits. I have spent around $15,000 in commission this year. And I was wondering if anybody offers lower commissions than the 0.01/0.005 per share.

I use Interactive Brokers (very happy with them), but I was looking at ways of reducing my costs if it is possible.

I keep open positions overnight sometimes. And trade around 200000 shares a month.

Any suggestions are much appreciated.

Best regards.
 
I was going to create a similar thread. My net is 50% of my gross :eek: and I pay far less a commision rate than you. The only solution is to do more swing trading and trade longer trends.
 
you guys maybe doing enough trading that you could get hooked up with a firm that offers rebates from ECNs. Although if you are good and trading that much you should really look at prop trading.
 
My commissions can run 20 to 40% of my business costs. However, I am focusing on maximizing my volume because what I make is tied directly to the amount of volume I trade. The more volume I trade, the more money I make and I have seen this pattern in my numbers for several years. Focus on growing your business, making another 100k rather than reducing your costs by 10%, that's my suggestion.

Nice trading and continued success to you!

Mike
 
if you trade longer time frames ...

and are considered to have active "Trader Status"

or trader with MTM by the IRS

what percent of trading can be done over longer time frame to not conflict with this active trading status?

( this probably has been asked or answered before somewhere on ET )
 
so you're saying if you trade 100k a day you mske more than trading 200k a day. and if you trade 300k a day you make more than 200k shares a day? i think one gets to a pt of dimishing returns and overtrading
 
Thanks all answering my question:

1- Why would prop trading be better for me? Don't they take a piece of your profit? How low are their commissions?
I am not intersted in more buying power, i have all the cash i need for the type of trading i am doing.

2- What is hlvcapital? it seems to be a prop firm to me. Correct me if i am wrong

3- I can't trade longer time frames since i don't know how to do that, and I can't handle it emotionally. I am comfortable with 0 to 3 days holding. No more.

Thanks
 
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