CMEG, OTC, commissions, & Bear Bull Traders relationship

[joeylowe 2]

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

 

[Kasper 13]

I think Carlos made a video about this called "How to Avoid ECN Fees by using Hotkeys"

I'm not sure about the OTC market.

Kasper Jensen

 

[joeylowe 2]

Thanks Kasper. I'll check it out. 

[Daniel Thomas 23]

The shortest and most laymen way to explain how to add liquidity to the market is this:  use LIMIT orders that are LOWER on level 2 than top line (level 1).  

Example: 

Current BID is $10.09

Current ASK is 10.11

If you want to go LONG, submit a LIMIT order at $10.08, or lower.

If you want to go SHORT, submit a LIMIT order at $10.12, or higher.  

 

Hope that helps; STAY GREEN!

 

Edited May 12, 2019 by Daniel Thomas