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Message
re: TD Ameritrade lowers cost per trade to $6.95
Posted on 3/1/17 at 4:03 pm to dabigfella
Posted on 3/1/17 at 4:03 pm to dabigfella
If you keep $10K in an IB individual account, and your commissions are less than $10 per month, the activity fee is $10 minus month's commissions.
They will portfolio margin, rather than margin individual stocks.
Various commission structures. You can fix it at .005, minimum of $1 per trade. Or you can tier your structure at potentially lower commissions. Some free ETFs.
But it gets cloudy. You can route trades to get liquidity rebates, etc.
The other rub is you pay for whatever feeds you want. There is some free market data. So you're going to pay for L2 and top of book, and probably need to pay for API access.
You can do a lot of stuff on IB. Contract for differences on anything, if you can find a counterparty. London gold if you can get away with it. Credit default swaps.
But, but, but. They aren't E Trade. They won't give you 3 days on a margin call. Especially if it is portfolio margin, and the risk model falls apart. They will immediately liquidate. You're going to pay for busted trades that aren't your fault.
So if you put $10K there, and make 3 trades a month, you're going to pay $10 that month. Plus news feeds, plus L2, plus some directing charges less rebates. So now you're up to $21 to $31 monthly. But If you just want to pay $10 for (essentially) unlimited trading as a infrequent retail trader, or investor, and don't necessarily want market depth etc., $120 per year is pretty hard to beat. I used the word essentially. I'm assuming low trade volume.
If you have $100K there, one account, or multiple accounts linked, you're done with inactivity fees, can start to get even lower commissions, and would probably buy a monthly bundle of feeds, market depth etc.
As da big fella mentioned, you can short hard to borrow shares, margin is levered with portfolio margin, there is access to all sorts of markets, including some dark pools retail investors can get to, ad infinitium.
I don't trade per se, but what I like to use it for is when I sell off part of my core holdings to take some profit (usually to buy right back into the same security at a better entry point. If I wanted to dump 5000 CVX and WYNN, I'd route the trade to various market centers to not tip my hand that I was unloading. More stable pricing. Some rebates for adding liquidity to certain market centers. There are some other ways you can "hide" trades. They are never truly hidden, but for all practical purposes, they are hidden for the retail guy on TD, and most average people. So you can look at top of book, and see pending buys, and how many shares, and where the buys are coming from. Route 5000 CVX to 6 different places to try to avoid partial fills and what generally drops the price of what you're trying to sell.
They will portfolio margin, rather than margin individual stocks.
Various commission structures. You can fix it at .005, minimum of $1 per trade. Or you can tier your structure at potentially lower commissions. Some free ETFs.
But it gets cloudy. You can route trades to get liquidity rebates, etc.
The other rub is you pay for whatever feeds you want. There is some free market data. So you're going to pay for L2 and top of book, and probably need to pay for API access.
You can do a lot of stuff on IB. Contract for differences on anything, if you can find a counterparty. London gold if you can get away with it. Credit default swaps.
But, but, but. They aren't E Trade. They won't give you 3 days on a margin call. Especially if it is portfolio margin, and the risk model falls apart. They will immediately liquidate. You're going to pay for busted trades that aren't your fault.
So if you put $10K there, and make 3 trades a month, you're going to pay $10 that month. Plus news feeds, plus L2, plus some directing charges less rebates. So now you're up to $21 to $31 monthly. But If you just want to pay $10 for (essentially) unlimited trading as a infrequent retail trader, or investor, and don't necessarily want market depth etc., $120 per year is pretty hard to beat. I used the word essentially. I'm assuming low trade volume.
If you have $100K there, one account, or multiple accounts linked, you're done with inactivity fees, can start to get even lower commissions, and would probably buy a monthly bundle of feeds, market depth etc.
As da big fella mentioned, you can short hard to borrow shares, margin is levered with portfolio margin, there is access to all sorts of markets, including some dark pools retail investors can get to, ad infinitium.
I don't trade per se, but what I like to use it for is when I sell off part of my core holdings to take some profit (usually to buy right back into the same security at a better entry point. If I wanted to dump 5000 CVX and WYNN, I'd route the trade to various market centers to not tip my hand that I was unloading. More stable pricing. Some rebates for adding liquidity to certain market centers. There are some other ways you can "hide" trades. They are never truly hidden, but for all practical purposes, they are hidden for the retail guy on TD, and most average people. So you can look at top of book, and see pending buys, and how many shares, and where the buys are coming from. Route 5000 CVX to 6 different places to try to avoid partial fills and what generally drops the price of what you're trying to sell.
Posted on 3/1/17 at 6:42 pm to whodatigahbait
quote:Schwab's new fees go into effect this Friday, 3/3.
Just announced this week, schwab followed suit to the same amount.
Posted on 3/1/17 at 8:13 pm to whodatigahbait
quote:the "catch" is that they don't automatically reinvest dividends and they keep the interest on your cash accounts. Not a big deal if you stay on top of it.
What's the catch here?
Posted on 3/1/17 at 9:21 pm to Iowa Golfer
Scottrade has a FRIP program for dividends. Any good?
Posted on 3/1/17 at 9:42 pm to Iowa Golfer
quote:
There are some other ways you can "hide" trades. They are never truly hidden, but for all practical purposes, they are hidden for the retail guy on TD, and most average people. So you can look at top of book, and see pending buys, and how many shares, and where the buys are coming from. Route 5000 CVX to 6 different places to try to avoid partial fills and what generally drops the price of what you're trying to sell.
Assuming this is an example of what you're talking about doing, it's only hidden to those who don't know what to look for. I left off the exchange data because that picture is actually for /ES contracts from several minutes ago, but I needed an example. If I see something like that at the same second and at or about the same price but through different exchanges, then I know what happened. Most retail people won't, though. They'll just see noise.
Posted on 3/1/17 at 9:55 pm to Paul Allen
quote:
Is Scottrade next?
if you transfer a TD or Scottrade account to Schwab, they'll give you free trades for all the years you were with those firms. You don't even need a high account balance.
Posted on 3/1/17 at 10:03 pm to Paul Allen
quote:
What?! Link?
If you call the 800 number and ask about the Scottrade account transfer deal a broker should fill you in.
This post was edited on 3/1/17 at 10:20 pm
Posted on 3/1/17 at 10:06 pm to Paul Allen
Actually, here is the public link LINK
Looks like the 4.95 hasn't been updated yet on there
Looks like the 4.95 hasn't been updated yet on there
This post was edited on 3/1/17 at 10:20 pm
Posted on 3/1/17 at 10:11 pm to Old Money
Thanks. It's a fairly easy process to switch?
Posted on 3/1/17 at 10:13 pm to Paul Allen
Yep. You'd fill out the TOA paperwork with schwab and the firm can pay your TOA fees
Posted on 3/1/17 at 10:14 pm to Old Money
Cool. Thank you for the information
Posted on 3/2/17 at 5:38 am to Omada
I'm not sure what you're trying to display. If you can explain it to me, it would help me. I'm assuming someone wants to hide how many futures contracts they are either buying or selling?
What I'm talking about is using iceberg and hiding the size. Also routing one order to multiple places. Some other sell orders that attempt to get volume weighted pricing. They have some algorithm stuff, but it has been a long time since I've ever used it, and it has advanced beyond what I need at this point, and what it was back then. I think I sell using an iceberg that randomizes the size based on the algo's probability of price moving more favorably.
What I might use now is price improvement auction for options. So while almost everyone else is trading lower liquidity options in either increments of a nickel or dime, I'll route the order to BOX, and auction my bid/ask in pennies.
What I'm talking about is using iceberg and hiding the size. Also routing one order to multiple places. Some other sell orders that attempt to get volume weighted pricing. They have some algorithm stuff, but it has been a long time since I've ever used it, and it has advanced beyond what I need at this point, and what it was back then. I think I sell using an iceberg that randomizes the size based on the algo's probability of price moving more favorably.
What I might use now is price improvement auction for options. So while almost everyone else is trading lower liquidity options in either increments of a nickel or dime, I'll route the order to BOX, and auction my bid/ask in pennies.
This post was edited on 3/2/17 at 5:45 am
Posted on 3/2/17 at 7:29 am to Iowa Golfer
Sorry about being unclear. Let's use your CVX example. You split up your 5000 CVX sell order to 6 different places. When that order is filled, I will see something like the picture I linked: at least 6 transactions at the same second, the same or very similar prices, and through different exchanges (or whatever term is most appropriate). I left off the exchange data in the pic because /ES trading was happening through the same exchange. I wanted to show an example, and while /ES wasn't what I wanted to use, it was the most readily available at the time of posting.
Anyway, if I saw something like that, I would reasonably assume that all of those transactions occurring at the same time all tie back to an order by one entity. For example, someone might have made a sweep to fill order. I wouldn't know who made the order, but I can guess intent based on whatever other data I have available. As you said, you can't really hide you trades. You may be able to hide your intent, though.
On the other hand, if your order split 6 ways filled at multiple different times, I probably would miss it if those times were far enought apart. Your order would be lost in the crowd as far as I'm concerned.
Anyway, if I saw something like that, I would reasonably assume that all of those transactions occurring at the same time all tie back to an order by one entity. For example, someone might have made a sweep to fill order. I wouldn't know who made the order, but I can guess intent based on whatever other data I have available. As you said, you can't really hide you trades. You may be able to hide your intent, though.
On the other hand, if your order split 6 ways filled at multiple different times, I probably would miss it if those times were far enought apart. Your order would be lost in the crowd as far as I'm concerned.
Posted on 3/2/17 at 8:10 am to Omada
You might not see every order. At least not very easily, and possibly not at all depending on what feeds you have. That depends on where they are routed. It would be hard to pick out becuase the size would be hidden, and/or randomized. Some platforms won't show bid / ask if there is no size associated with it. Some will show the orders coming through NYSE top of book even though they might get executed elsewhere.
You can probably figure it out as it seems you are making strategic trades and tracking this stuff carefully. Most probably can't. I'm really not an active trader any longer, so you probably know more about it than I do. I do know this, I don't understand probably 50% of the capabilities of IB, and probably less than 30% of the available markets I have access to.
You should start to play around with IB, it sounds like it would be beneficial to you.
You can probably figure it out as it seems you are making strategic trades and tracking this stuff carefully. Most probably can't. I'm really not an active trader any longer, so you probably know more about it than I do. I do know this, I don't understand probably 50% of the capabilities of IB, and probably less than 30% of the available markets I have access to.
You should start to play around with IB, it sounds like it would be beneficial to you.
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