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I'd like to be able to spend <$1k per stock, $10 is a 1% fee on a $1k order, and if you want to sell later and the stock hasn't appreciated in price another $10
by TomGullen 13y ago
I'd like to be able to spend <$1k per stock, $10 is a 1% fee on a $1k order, and if you want to sell later and the stock hasn't appreciated in price another $10 = 2% total fees.
$10 each way fee can seriously eat into the EV of people looking to make small orders, and disadvantages this group against the wealthy (who already have a host of other edges!)
I'd like to spend a few hundred on several stocks, but the fee makes this not worth it. Leaves me with the option of don't, or put it all in one stock which isn't a good idea.
- crystaln 13y agoExactly my point. If you're buying <$1k in a stock, you're likely not going to be a big source of revenue for margin loans or API access. So basically, they will attract lots of small, active trading accounts. I don't see the model.
- dllthomas 13y agoIf they actually have lower expenses than competitors, they may be competative on margin rates. If that is true, then anyone who manages to make some money trading small amounts and wants to scale up is likely to stick around.