What is the scam with zero commission brokers?
- Thread starter 1a2b3cppp
- Start date
I'd buy that for a dollar!
Robert Morse
Sponsor
Funny you say that. Open an account with Lightspeed. Choose Lightspeed Trader, Sterling Trader Pro or Realtick. Choose the $4.50/Trade commissions plan. Use a route like ARCA or NSDQ and make your order visible and add liquidity. On 5000 shares, we charge you $4.50, the exchange rebate is $10.00 for a net credit of $5.50 before reg fees.
So the formula is then:
-4.50 + x * 0.002
where x is the # of shares
Example for 1000 shares: -4.50 + 1000 * 0.002 = -2.50, meaning net commission reduces to 2.50
Example for 2000 shares: -4.50 + 2000 * 0.002 = -0.50, meaning net commission reduces to 0.50
Example for 3000 shares: -4.50 + 3000 * 0.002 = 1.50, meaning no commission plus one gets paid 1.50
Example for 4000 shares: -4.50 + 4000 * 0.002 = 3.50, meaning no commission plus one gets paid 3.50
Example for 5000 shares: -4.50 + 5000 * 0.002 = 5.50, meaning no commission plus one gets paid 5.50
...
Last edited:
Robert Morse
Sponsor
That all looks correct except is does not include SEC/TAF regulatory fees on sell orders. I assume you know what "adding liquidity" is. https://www.lightspeed.com/pricing/routing-fees/
I thought per-trade plans are not eligible for rebates but don’t incur liquidity taking fees either. Otherwise, why not just pick per-share plan? Sending a single 5000 share liquidity adding order is not a good/realistic example.
What does this mean?
%%
AMTD was better than scotttrade/had both.
ITs not so much a scam/they disclose payment for order flow .. Most make bit on interest/with enough accounts its a lot of interest...……………………………………………………………………………………………………….
NOT a prediction/selling a round numbers may get a better fill .
BUT not really practical to only sell @ round number$.