What is average commissions amount by month?

[Johan M 0]

Hello guys,

i just want to ask about the commission fee that you guys pay, in average by month, i dont feel i overtrade but my commission fee is around 5% of my capital every month (50k usd), do you think is quite normal or its too much? 

I used interactive broker and my commission scheme is fixed amount

Thanks for support

johan

[BBT Member 001 27]

I pay around 2%, of my capital ~$30k, normally about $30-$50/day . i trade around 3-5 trades per day 1k shares for stocks like MU. 

[Jean-Pierre Poulin 7]

Hi guys,

I'm still in the process of setting up the right broker for me and these fees seem quite high!  (Especially paying 5% of $50K = $2,500 per month = $125 per trading day.)

More info on your usage please:

Johan: How many full-cycle trades per day?  What average share size?  Did you find exorbitant fees ontop of regular (low) IB commissions?

Marcel: you pay around $10 per full-cycle trade?  Which broker?

What do you think is best for my needs?  (Described here)

 

Edited July 15, 2019 by Jean-Pierre Poulin

[Robert H 453]

22 hours ago, Johan M said:

Hello guys,

i just want to ask about the commission fee that you guys pay, in average by month, i dont feel i overtrade but my commission fee is around 5% of my capital every month (50k usd), do you think is quite normal or its too much? 

I used interactive broker and my commission scheme is fixed amount

Thanks for support

johan

Switch to tiered structure. It is cheaper under 99% of circumstances.

[BBT Member 001 27]

6 hours ago, Jean-Pierre Poulin said:

Hi guys,

I'm still in the process of setting up the right broker for me and these fees seem quite high!  (Especially paying 5% of $50K = $2,500 per month = $125 per trading day.)

More info on your usage please:

Johan: How many full-cycle trades per day?  What average share size?  Did you find exorbitant fees ontop of regular (low) IB commissions?

Marcel: you pay around $10 per full-cycle trade?  Which broker?

What do you think is best for my needs?  (Described here)

 

AMD or MU i normally do 1k, yes i pay about $10 round trip. 

$50 per day more or less. Im not proud of it though.

I use interactive brokers

[Jean-Pierre Poulin 7]

1 hour ago, Robert H said:

Switch to tiered structure. It is cheaper under 99% of circumstances.

I was just wondering about that Robert thank you.

When does fixed start to make sense for us guys?

[Jean-Pierre Poulin 7]

1 hour ago, marcelperez said:

AMD or MU i normally do 1k, yes i pay about $10 round trip. 

$50 per day more or less. Im not proud of it though.

I use interactive brokers

Have you considered Speed Trader?  (See Abiel's recommendation on my post at 

It would be so nice if we could find a way to reduce this further!  Hopefully broker competition will continue

[Johan M 0]

thanks a lot for your reply guys

@Jean-Pierre Poulin I risk max 1% of capital by trade (here 500$), never more than 4,000 shares by entry (number of share is set based on my SL),  no low float, only stock > 10$ and daily target is 1,000$ (2% capital)

For my day cycle, it depend a lot of the stock in play and their volatility, i usually try to make max 4-5 trades per day

Example for AMD or MU , i often enter 4,000 share because the stock has low volatility, my SL is 0.05$-0.10$ - which cost me higher fee 

but if i trade TSLA for example, my SL is often 0.90$-1.25$, so it equal to 500-400 share, which cost me lower fee

So some day i spend 50$ fee, some i spend 200$, depend of the stock traded

*be really careful with volume traded, cause me some pain before

If i should make advice, i will say its better to trade less (max 5 trade per day), set your TP at min 2:1 RR  (this is most important point i think) and stop trade once you achieve your daily target - it could be done with 1 trade.

here nice video from Robert about share sizing and RR: www.youtube.com/watch?v=eDC5TQC13-s&t=2s

thanks @Robert H i will try tiered fee from today and see if it improve my fee

 

 

 

[Jean-Pierre Poulin 7]

Hi Johan, thanks for the useful tips.

I look forward to being at the level you're at now

Have you considered Speed Trader?  Could it reduce your overall bill?  (See Abiel's response to my post here)

[Johan M 0]

i think i checked before and i found out that Speedtrader does not provide fixed pricing structure if i remember. However, IB is cheaper than ST if you use their tiered structure. 

https://speedtrader.com/commission-fees/

https://www.interactivebrokers.com/en/index.php?f=1590&p=stocks2

 

[Jean-Pierre Poulin 7]

Thanks Johan, much appreciated.  It looks like its a tossup right now between IB and SpeedTrader.  I'll have to do a bunch of reading to try to intelligently pick between the two!

[BBT Member 001 27]

On 7/16/2019 at 11:33 AM, Jean-Pierre Poulin said:

Thanks Johan, much appreciated.  It looks like its a tossup right now between IB and SpeedTrader.  I'll have to do a bunch of reading to try to intelligently pick between the two!

i think both are good, my only reason for interactive brokers was its track record and good fills i get.  also they always have shares for short

[Jean-Pierre Poulin 7]

Thanks Marcel,

Having short shares is quite important.  I'm happy that you think the fills are good... most important!

How did you decide between IB fixed versus IB tiered?  (I'm thinking of IB tiered so I can have one large buy and 3-4 sells per trade (so I can scale out of my position at different pullbacks)

[BBT Member 001 27]

On 7/22/2019 at 4:02 PM, Jean-Pierre Poulin said:

Thanks Marcel,

Having short shares is quite important.  I'm happy that you think the fills are good... most important!

How did you decide between IB fixed versus IB tiered?  (I'm thinking of IB tiered so I can have one large buy and 3-4 sells per trade (so I can scale out of my position at different pullbacks)

I tried each for a month each and then calculated the total commission / the total number of shares traded and noted that i ended up paying less with tiered. It is not a material difference though