Broker for frequent trading?

[bathuu]

Hi guys,

Is there any broker that suitable for frequent trading, instead of charges by per trade? What would be their daily or quoted charges for a number of trades and which one is most widely used, reliable, convenient and cheap?

Cheers

 

[skyQuake]

Hi guys,

Is there any broker that suitable for frequent trading, instead of charges by per trade? What would be their daily or quoted charges for a number of trades and which one is most widely used, reliable, convenient and cheap?

Cheers

http://www.traderdealer.com.au/fees-in-detail.aspx

11bp on total val of trades.

 

[bathuu]

Thanks for the reply SkyQuake,

I just need to clarify few things below, because I have never been familiar with this kind of charges. Do TraderDealer issue one confirmation for up to 12 trades in one day? And the charge is based on the total value of trades, if the up to 12 trades resulted $0 to $18,000 amount, the charge is flat rate of $19.50 and $18,001 more, the charge is 0.11% of the total value of the trades?

For example, If I make 4 /or up to 12/ trades in one day, resulting total value of $18000 /each trade worth $4500/, would I only be charged $19.50 for 4 /or up to 12/ trades?

Are there any potential downsides of using TraderDealer in terms of reliability and fast order placing or in other areas, compared to Commsec /which I am using now/, besides significant advantage of brokerage charges?

Cheers

 

[skyQuake]

Thanks for the reply SkyQuake,

I just need to clarify few things below, because I have never been familiar with this kind of charges. Do TraderDealer issue one confirmation for up to 12 trades in one day? And the charge is based on the total value of trades, if the up to 12 trades resulted $0 to $18,000 amount, the charge is flat rate of $19.50 and $18,001 more, the charge is 0.11% of the total value of the trades?

yup, looks that way. It looks like you can place at 12 price levels rather than 12 trades. ie u can refresh ur order at a price level.

For example, If I make 4 /or up to 12/ trades in one day, resulting total value of $18000 /each trade worth $4500/, would I only be charged $19.50 for 4 /or up to 12/ trades?

I think its per stock. So if you do multiple stocks that add up to $18k u will be charged per stock. Otherwise if its like 12 trades for one stock thats fine.

Are there any potential downsides of using TraderDealer in terms of reliability and fast order placing or in other areas, compared to Commsec /which I am using now/, besides significant advantage of brokerage charges?

Cheers

Have not used it before. Assume its like insto brokers. I do know that commsec will go down on huge days.

 

[bathuu]

Hi SkyQuake,

So are you saying these 12 trades have to be on one stock? I am also wondering do they all have to be either only 'buy' orders or 'sell' orders? For example, can those 4 trades be 2 'buy' and 2 'sell' trades on 2 different stocks?

Cheers

 

[skyQuake]

Yeah it seems to be per stock:

an individual confirmation is issued for a buy or a sell in an individual stock

buys/sells dont matter - just gross volume

 

[bathuu]

Hi, SQ,

Hmm, that could be problem for me, since I don't have any trading strategy with multiple trades involves only one stock at multiple price level.

By the way after reading some threads, Interactive Broker could very well suit for me, if they charge only $6 for one trade. More than one third cheaper than what I'm paying for commsec now.

Any thoughts or experience on IB?

 

[skyQuake]

Hi, SQ,

Hmm, that could be problem for me, since I don't have any trading strategy with multiple trades involves only one stock at multiple price level.

By the way after reading some threads, Interactive Broker could very well suit for me, if they charge only $6 for one trade. More than one third cheaper than what I'm paying for commsec now.

Any thoughts or experience on IB?

Used IB before, love it. Superior to commsec in every way except setup.
However if you don't trade frequently, bell direct may be a cheaper option (no monthly activity fees)

 

[bathuu]

Hi SQ,

What you mean by 'setup' of IB? Can you clarify this for me please. Do you also know with the IB, I can place buy order/s that worth more than what I have in the my trading account, as long as I close that position/s in that day or next day /I like that commsec allows this/.
I pretty much end up doing at least one trade a day /some days 4-5 trades, in and out, kind of addicted as same time honing my trading skill and feeling of the market /

As you said bell direct may be a cheaper option (no monthly activity fees)? Could you tell me more about this please. Sorry being very childish and asking many questions as I am still new to this stock trading and trying to get my head around all these unknown things.

What I am really after is just cheap reliable brokerage. I am not interested in other extra services like live data or graphical tools /probably gonna cost more/ etc provided by brokers. In this case IB is the best bang for the buck?

Cheers

 

[skyQuake]

Hi SQ,

What you mean by 'setup' of IB? Can you clarify this for me please. Do you also know with the IB, I can place buy order/s that worth more than what I have in the my trading account, as long as I close that position/s in that day or next day /I like that commsec allows this. I pretty much end up doing at least one trade a day /some days 4-5 trades, in and out, kind of addicted as same time honing my trading skill and feeling of the market /

Setting up the acct is a b*tch compared to say commsec or bell.
No, you can only trade only as much $ as u have in ur acct. commsec's model is dangerous and dodgy. I also think with IB, you won't be able to access money from any shares you sold till t+3, making day-trading harder.
Unless you apply for a margin acct (20k min)

As you said bell direct may be a cheaper option (no monthly activity fees)? Could you tell me more about this please. Sorry being very childish and asking many questions as I am still new to this stock trading and trying to get my head around all these unknown things.

IB I think is $35/ month if you dont trade more than twice? Three times?

What I am really after is just cheap reliable brokerage. I am not interested in other extra services like live data or graphical tools /probably gonna cost more/ etc provided by brokers. In this case IB is the best bang for the buck?

Cheers

Both IB and Bell have Free stops (unlike commsec), IB obviously has a greater range of tools but is slightly harder to get your head around, they also can short now, and most importantly for beginners, have a simulator.Check out the IB thread for more info.
Why not open an acct with both and see which one u're more comfortable with?
I see no harm in opening a bell acct with the welcome bonus and no strings or monthly fees.
www.belldirect.com.au/nrma

gl

 

[bathuu]

Hi SQ,

Yeah, I am thinking to open accounts and trying them out. However reading from threads about IB, they seem to require 10000USD to open the account, which makes me wonder if I can allocate almost half of my trading capital to it, just to try out. Also the payment term does not seem to offer much flexibility unless I have enough trading capital cover multiple buy orders. /which is not the case with commsec and I also like it and gives me chance to utilise my trading capital super efficiently/. Moreover, IB does not seem like local broker and all the fund transfer to trading account involves international money transfer to USA?

Regarding the BellDirect, is it similar to commsec in terms of flexibility of payment offsetting trades? Does BD require no upfront money to open the account and allow to trade on that commsec model? Any account keeping fees or activity fees or any other extra hidden costs? /I like the that commsec does not have any other stingy fees except brokerage/.

Whooh, after going through these many brokers, I have thought that 'what you pay what you get' seems to apply for services provided by these brokers. With cheaper brokers, hassle of opening and keeping account and stricter payment rules, and on other hand brokers like commsec seems to offer less hassle of opening keeping account and more flexibility on the payment etc. It seems like better end up staying with commsec /unless BD offers same service at $15/, if I got this right., since I don't have that huge trading capital.

Cheers

 

[darkerdragon]

Hi guys,

Is there any broker that suitable for frequent trading, instead of charges by per trade? What would be their daily or quoted charges for a number of trades and which one is most widely used, reliable, convenient and cheap?

Cheers

Amscot

 

[Perryt]

Setting up the acct is a b*tch compared to say commsec or bell.
No, you can only trade only as much $ as u have in ur acct. commsec's model is dangerous and dodgy. I also think with IB, you won't be able to access money from any shares you sold till t+3, making day-trading harder.
Unless you apply for a margin acct (20k min)




IB I think is $35/ month if you dont trade more than twice? Three times?


Both IB and Bell have Free stops (unlike commsec), IB obviously has a greater range of tools but is slightly harder to get your head around, they also can short now, and most importantly for beginners, have a simulator.Check out the IB thread for more info.
Why not open an acct with both and see which one u're more comfortable with?
I see no harm in opening a bell acct with the welcome bonus and no strings or monthly fees.
www.belldirect.com.au/nrma

gl

Hey guys,

To open an IB account, the minimum is $10,000 USD (cash or margin account )
The minimum monthly fee is $10 USD ( if you generate $10 USD in commission, the fee will be waived )

Thanks and regards
Perry
IB Sales Rep

 

[skyQuake]

Hi SQ,

Yeah, I am thinking to open accounts and trying them out. However reading from threads about IB, they seem to require 10000USD to open the account, which makes me wonder if I can allocate almost half of my trading capital to it, just to try out. Also the payment term does not seem to offer much flexibility unless I have enough trading capital cover multiple buy orders. /which is not the case with commsec and I also like it and gives me chance to utilise my trading capital super efficiently/.

what happens if the stock you're daytrading goes into trading halt? imo dont use leverage like that.

Moreover, IB does not seem like local broker and all the fund transfer to trading account involves international money transfer to USA?

Technically its to a bank in Syd which transfers it to the US.

Regarding the BellDirect, is it similar to commsec in terms of flexibility of payment offsetting trades? Does BD require no upfront money to open the account and allow to trade on that commsec model? Any account keeping fees or activity fees or any other extra hidden costs? /I like the that commsec does not have any other stingy fees except brokerage/.

As far as I know only commsec does the commsec model where u can buy/sell crap without money in ur acct. Bell has no other fees. Commsec though will charge u for conditional orders.
http://www.smh.com.au/business/hats-off-to-day-traders-who-stick-to-their-guns-20110506-1ebxj.html
link related.

Whooh, after going through these many brokers, I have thought that 'what you pay what you get' seems to apply for services provided by these brokers. With cheaper brokers, hassle of opening and keeping account and stricter payment rules, and on other hand brokers like commsec seems to offer less hassle of opening keeping account and more flexibility on the payment etc. It seems like better end up staying with commsec /unless BD offers same service at $15/, if I got this right., since I don't have that huge trading capital.

Cheers[/QUOTE]

 

[bathuu]

Hi SQ,

I understand the drawback of using commsec model when things go wrong, however when I use that leverage I never place buy order for only one stock which worth more than what I actually have in my account. And the leverage gives me the opportunity to put multiple buy orders at my target prices on different stocks and enables me to enter into successful trade if any of those prices comes to my way. Simply it increases the chance of success in this game.

Cheers

 

[G-Zilla]

with Interactive Brokers forex data is free but I believe you need to pay for other data unless you want it 20mins delayed. They also charge $5 a month if you don't trade at all on their free data.

I actually use comsec for my live ASX prices and IB for the trade - I don't actually make many ASX trades though and use IB mainly for forex and "opportunity" trades on the ASX

 

[Synergy]

As a relatively high frequency trader, I started with Comsec and am still with them - some 600 trades later.

For the the advantage of being able to put orders on totalling a greater value than I can afford is the major drawcard for me. I put orders on below the current price and miss more than I hit, so the extra cost is worth it for me. It may make sense to use another broker like IB as a primary broker and Comsec as an 'overflow' account.