Hi! I've been trading listed stocks with CMEG for a long time now. I recently decided to explore the OTC market strategy. One thing I noticed right off the bat is the expense of commission and ECN fees. With CMEG, the commission rate >1k stocks is .007 and the ECN rate is .0065.
That means if I trade a 10k lot, my costs are $135 each way. Since these tickers rarely move more that a nickel a day and most only move one or two cents, it hardly seems worthwhile.
So I reached out to CMEG and was told 2 things. First, I as told I needed to learn how to add liquidity back to the market to reduce my ECN costs. Second, I was told to contact my trading community to find out what the discounted OTC commission rate is.
So, how do I add liquidity back to the market in a way that reduces the ECN fees and do we have a discounted OTC commission rate or a commission cap with CMEG? Paying a broker $70 to execute a trade one way is unrealistic.
Thanks,
Joey