What % of your P&L is going to commissions?

Ok, say you're making money. You pay 20% of profits to the broker, then you pay like what 20-50% in taxes to the government? What are you left with in the end? And that is if you are overall profitable. Add 20% commission loss to losing trades as well.
 
For me in July, my commissions were 255% of my profits. Yes, 255% of my profits -- I lost money in July. I made money on my positions (ignoring commissions/fees), but my commissions exceeded my profit by roughly 2.5x whereas other months my commissions are < 5% of my profits. I'd have gladly taken 20% in July lol.
 
every time I spend $4.95 to buy $20k worth of stocks, I expect a minimum of a 2-bagger.

the commission should just be the electricity cost to move a few digits
 
I have looked at other brokers, but for larger orders of 100 contracts or more the only thing I have found cheaper might be tastytrade. I guess I can rephrase the question. Is their anyone who trades 4 legged spreads in equities and really likes the commission price at their broker?
 
  • Like
Reactions: 777
SmallFry said:
Ok, say you're making money. You pay 20% of profits to the broker, then you pay like what 20-50% in taxes to the government? What are you left with in the end? And that is if you are overall profitable. Add 20% commission loss to losing trades as well.
More...

Fortunately, the govt only taxes on net profits which includes commissions. My broker includes commissions in the P/L. It would be dishonest not to.
 
Bekim said:
$12.50 ticket fee plus .15 per contract plus fees
More...

Well, that is a good rate as long as your order is being handled well. Our rates start at $0.60/options, no ticket fee, including the OCC fee of $0.05. On Silexx, Sterling Trader Pro and Realtick, we offer both SMART and DMA. On LIghtspeed TRader, we focus on and SMART routes. When LVX is available for Wedbush accounts, that will only have SMART. Our SMART routed orders avoid maker/taker fees on all but cash settled index options. I can provide volume discounts for active traders.

Plus, you get me if you choose me as your sales person.

Bob
 
Choosing your trade size to reduce your per options commissions rate is just silly. You should size your trade based on your risk tolerance, size of your account and expectation of profit. If the commission is an issue, your expectation of profit is not high enough.
 
You must log in or register to reply here.
Back
Top