Broker True Fees - Can we Compare ?

[Mikemix 1]

As a beginner trader, one thing I was surprised by was the TOTAL fees involved. I think many traders just look at the commission rates and think that's what the true fees are.  I was really surprised by the ECN fees on CenterPoint, and I am wondering if other brokers, especially Interactive Brokers, would be a better choice.  I am hoping we can share the TOTAL costs of taking 5,000 shares would be on various brokers (e.g. Interactive Brokers, CMG, Suretrader, Speedtrader, etc... ?  Also, any  strategies to AVOID or lower the ECN fees, which I know can vary a bit by route.  Would it be better to sell or buy using a LIMIT instead of a "Marketable limit" ? Does it matter ?

Here are the costs to take 5,000 shares on CENTERPOINT, using Marketable limit orders each time on ARCS (smart route)

As an example, to use a Smart Route (Taking Liquidity), here is what is charged:

Tickets = 10  --- Total Shares = 5,000 ---  Commission= .0035 (5,000) = 17.35 --- ECN Fee Smart Route = .0032 (5,000) = 16.00  SEC Fee = .89  NASD Fee = .30

Total cost for 5,000 shares = 34.54

Are these fees out of line or similar to what you guys see ?

Thanks!

Mike

 

Edited November 23, 2018 by Mikemix
incorrect calculation

[Michael 0]

Looks pretty typical to me. Using limit orders (adding liquidity) will get you a rebate of .002 per share for the ECN. That is, you get money back (.002/sh) instead of having to pay (.0032/sh).

If you trade less than 300,000 shares per month, the fee structure you've described is basically identical to Interactive Brokers (IB; with their tiered pricing option).

IB's fixed pricing option allows you to avoid ECN fees entirely (you still pay the other very small/negligible fees), but charges a bit more per share (.005). However, on the fixed plan you don't get rebates for using limit orders. Still, for folks that don't use limit orders and don't trade a ton of shares this plan seems optimal (compared to Centerpoint - assuming you're using only marketable limit orders - where you're paying .0035 commish + .0032 ECN for a total of .0067/sh).

More than 300k shares/month? With IB you'd then pay .002/sh commish, making IB the cheapest choice for very active traders, I think.

Can't speak to the other brokers, as I wouldn't consider opening an account with them and thus haven't researched their respective fee structures as thoroughly. From what I've seen though, none of them are offering anything particularly great (fee-wise) compared to Centerpoint and IB.