What is the scam with zero commission brokers?

[qlai]

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?

Ah, that's where I got the idea.

 

[KCalhoun]

if you're trading size, eg >1k shares then a direct-access broker & L2 are essential

if like me you trade piker size <200 shares then commissh free like fidelity or ameritrade etc is fine

 

[TrailerParkTed]

if you're trading size, eg >1k shares then a direct-access broker & L2 are essential

if like me you trade piker size <200 shares then commissh free like fidelity or ameritrade etc is fine

I “ traded PTON at least 200 times using 200-600 shares to build size shorting the gap and churning. Fills from my direct broker took the offer while knight-citadel filled me $94.3x94.50 at $94.34 while direct took out $94.50. It’s all good!

 

[1a2b3cppp]

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/

Elaborate and assume we don't.

 

[Robert Morse]

You can see based on the price of AAPL that this was written a few months ago.

 

[tradercat]

The real scam here is Lightspeed. I do not recommend.

 

[Cabin111]

Charles Schwab became the 7th largest bank in the US!! While you wait for your trade to clear (I think 3 business days) the money is held in their bank. They loan out the money and make major profits from YOUR money. Just another avenue of income...Oh and while you wait to trade, your extra money in their bank is earning .01%...

 

[1a2b3cppp]

You can see based on the price of AAPL that this was written a few months ago.

So market orders are taking and limit orders are adding?

 

[Robert Morse]

All market orders are clearly taking liquidity. A limit order where your buy price matches a sell order on the book or your sell order matches a buy order on the book, you are taking. If you get to that price first, you are adding.

So market orders are taking and limit orders are adding?

 

[1a2b3cppp]

So a limit order where there is a void of currently resting orders is adding, each other type of order is taking?