Considerations Going From Sim to Real

[wpicotte 16]

My initial 3-month Sim account expires week of Apr 2, and I'm going to continue down the daytrading path. I anticipate integrating live trading with ongoing paper trading within the next three months, and need to determine how best to go about this.

 

I'm thinking the best path is to open an account with IB or CME, to continue paper trading through this rather than re-upping the DAS sim account, and to subscribe to the chatroom separately. Related to this is the choice of a broker: IB seems to have the less expensive commission structure, so I'm leaning towards them.

 

Anyone with thoughts or feedback about any of the above, please chime in.

[Robert H 455]

Wesley, it really depends on where you are located and how much you have to open an account. If you're in the U.S. and have more than $30k, then SpeedTrader is a good option. I believe they have simulator if you pay for the SpeedTrader Pro platform. This is just a rebrand of DAS Trader Pro.

 

If you are in the U.S. with less than $30k, then CME is probably your best option. They have simulator with their DAS rebrand: Traders Elite Pro.

 

If you're in Canada, IB+DAS is the best bet. Hope that helps.

 

 

[Joseph Fisch 5]

Robert, Why is Speed trader a better option then IB if you're in th US?

[Robert H 455]

The commissions are very low at $2.95/trade. Andrew mentioned in the chat today he would go with them if they accepted Canadian clients.

[Joseph Fisch 5]

Thanks Robert. Isn't CME 2.95 too? I saw Andrew saying today that he wouldn't average out in CME because it's 2.95 each trade. so is he paying less in IB?

 

I'm still trading sim and when looking into brokers I get all confused how all the fees work... I wish there would be an easy comparison chart for dummies (like me...)

[Robert H 455]

CME is an offshore broker. If you have the $30k required minimum, then SpeedTrader is a better alternative. Take a look at this post where Andrew discusses the different brokers and commissions.

[Joseph Fisch 5]

Thanks for the very informative link. Just one question I couldn't find the answer, how much is the fee for IB? Andrew says he sometimes pays $1, which sound less then speed trader.

[Robert H 455]

Hi Joseph, IB has two commission structures.

Fixed: 0.005/share, minimum $1 per order

Tiered: 0.0035/share, minimum 0.35 per order

 

Fixed includes all regulatory fees. Tiered does not. Here is IB's commission schedule for more information.

[Joseph Fisch 5]

Thanks again Robert! So why might Speed Trader be a better option then IB if the commissions might be lower in IB?

[Robert H 455]

It really depends on your trading style. With no scaling in/out on 1k shares, IB works out to be $10 on the fixed plan. With SpeedTrader, it's $5.90. Even if you self in two halves, it's only $2.95 * 3 = $8.85. Personally, I scale out, so IB might work out to be cheaper for me. Also, if you're trading low floats where the position size can be up to 10k shares, then SpeedTrader is a no-brainer.

 

I believe SpeedTrader rebates your platform fee if commissions meet a monthly minimum. WIth DAS+IB, there is no such refund.

[Joseph Fisch 5]

Got it. I scale out too. Andrew trades and teaches this way so I guess IB will be a better fit for me. I just wonder why Andrew would wish to use Speed Trader.

[wpicotte 16]

After thinking about this transition a bit more, I'm subscribing to DAS directly for a month or so, subscribing to BBT as an annual member (what's up, people!), and will use the next 30-60 days to determine the best broker for my situation. The latter will include a Sim account, based on options reviewed to date, so I'll just snip DAS when I make that move.

 

Question about DAS subscription levels -- three offer Level 2 data. Can anyone confirm that to emulate the Level 2 access via the BBT 3-month subscription, I'm looking for the $150/mo plan -- i.e. DAS TotalView, Level 2 Quotes, but not ARCA, E-mini, etc.?

 

Thanks

[Robert H 455]

Yes, the $150/month Deluxe is what you're looking for. Take a look at this post on how to get extra level 2 data in exchange for Options data.

 

Here is a table which compares brokers. Hopefully it helps with your decision.

[wpicotte 16]

Robert, you're crushing this moderator role. Thanks for the info. Is the benefit of the upgrade more info in the Montage window (e.g. ACB orders) for decision-making?

[Robert H 455]

Yup, that's correct. ACB orders now appear in Montage L2 and this can help with reading L2 signals (if that is part of your trading technique).