Fees and Commissions

[Patrick Clelland 2]

Hello everyone. I am working in Sim right now and was wondering what I should anticipate for fees and commissions while trading. If my daily goal is $50, but I take 5 trades with partials to get there, wouldn’t I likely end up negative on the day after fees? I know each broker is different, but is there a dollar amount I should be thinking about in the back of my mind as I execute each trade in sim? Any guidance on this would be appreciated.

[Abiel 475]

Hi Patrick,  it will depend on your broker's commission structure, but with IB tiered you will pay 0.35 up to 100 shares  (.0035/share) + fees. If you use limit orders instead of marketable limit orders you will save on fees.  Here is the commission structure of CMEG.

[Patrick Clelland 2]

Abiel,

Thank you for your response and those links. I will likely use CMEG once I get out of sim so the thread you posted will be helpful.

[TiagoPereira1998 0]

On 7/4/2020 at 3:42 PM, Patrick Clelland said:

Abiel,

Thank you for your response and those links. I will likely use CMEG once I get out of sim so the thread you posted will be helpful.

Hi Patrick,

Like Abiel said it depends on the broker you're using and your style of trading. Me as new trader sometimes I find it frustrating to pay all the commissions we need to pay but they do vary a lot on a daily basis depending on the partials you take, stock price, number of trades etc.

I use CMEG and on a day I make $50 gross, I end up paying anything from $10 on commissions (if I do less trades with less partials) to $25 maximum (taking several partials, maximum of 5 trades).

But again, you shouldn't let this influence too much your trading strategy, with smaller accounts it is normal for commissions to take more of your profits but if you start being consistent and slowly growing, commissions become less significant on your P/L over time!