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This is a bad business. Competing on cost against large incumbents without a defensible low cost position in a competitive industry without most target users pa
by foobarqux 13y ago
This is a bad business. Competing on cost against large incumbents without a defensible low cost position in a competitive industry without most target users paying high costs currently (interactivebrokers).
- antr 13y agoI have to agree with you. Additionally, I'm happy to pay my broker 25 basis points for every trade I make. In exchange I get 24h phone support, trade over the phone, analyst research, morning notes, end of year trading tax records, etc. Paying for a service, if it's an excellent service, is not a bad thing. This internet trend of "everything free" wants to shift the attention from the fact the back-office, customer service and other support functions are lacking or inexistent.
- truthteller 13y agohow does interactivebrokers compare to this in terms of cost? are there any hidden costs retail investors should be aware of?
- foobarqux 13y agoThe fees, listed on the website, are mostly transparent but complex. You must pay at least $10 in commissions each month or they charge you the difference. Depending on how much you trade this might be a deal breaker. There is also a minimum initial deposit. Virtualbrokers is another option with more choice of fee structure. I don't think they have a minimum monthly fee but they charge you for data.
- sseveran 13y agoIB is very competitive. IB encourages volume so I believe our FIX gateway has a minimum of $100 in commissions. IB's pricing structure is very transparent in terms of pricing. You can also get rebates passed back to you.
- maxent 13y agoWell said. Add "in a regulated industry" too.
- vasilipupkin 13y agoYes, same thing was said about Google back in the day. Why have another search engine, when there are so many other ones