Choosing an online broker

[johenmo]

Am with CommSec but will swap - probably to IB. I want to start using conditional orders and CommSec charge heaps.

IB is about $6 per trade and CommSec is $20 + more for conditional orders.

Do some numbers based on your account size and trade size and see the drag. It makes yr mind up for you.

Have been happy with CommSec apart from the cost. And that's what it's about.

 

[jackson8]

hi all

a question was asked on another thread concerning conditional orders
https://www.aussiestockforums.com/forums/showthread.php?t=15051

Anybody had experience with commsec's conditional trading function.

I just got the feature activated but read that they may charge a fee if you alter and existing conditional order. That's pretty bad if they do.

and also
$15 per conditional order is a bit rich imo
+ $20 e/w for brokerage

Turns out to be a very expensive trade

thought maybe this thread may get some answers
are there brokers firms which have better rates for conditional orders than commsec and has anyone had any experience with these orders thru commsec

gary

 

[trader_Z]

Even IB is still too high.

Why do you people put up with $20 commish?

If people in general weren't such sheep and *demanded* lower commish, things would be a LOT different by now.

 

[sails]

Even IB is still too high.

Why do you people put up with $20 commish?

If people in general weren't such sheep and *demanded* lower commish, things would be a LOT different by now.

It doesn't work - Oz brokerages don't seem to care if they lose customers to US markets.

 

[trader_Z]

There's gotta be a way to pay less commish.

1. Bypass the brokers by opening a large account with a clearing member?

2. Forming a group of well-capitalized traders to access markets directly.

3. Maybe there's some issue with the exchange (ASX) charging high fees to begin with????

It doesn't work - Oz brokerages don't seem to care if they lose customers to US markets.

 

[jono1887]

well if anyone wants to start a boycott... im in :

 

[cutz]

There's gotta be a way to pay less commish.

1. Bypass the brokers by opening a large account with a clearing member?

2. Forming a group of well-capitalized traders to access markets directly.

3. Maybe there's some issue with the exchange (ASX) charging high fees to begin with????

So trader_Z, how many trades do you transact per day, what do you trade, how big are your positions, what's you average return per trade? , just wondering why you haven’t found a suitable broker.

BTW, not being cheeky, by telling us your situation someone may be able to recommend a broker for your particular needs.

 

[cooper1308]

There's gotta be a way to pay less commish.

1. Bypass the brokers by opening a large account with a clearing member?

2. Forming a group of well-capitalized traders to access markets directly.

3. Maybe there's some issue with the exchange (ASX) charging high fees to begin with????

Depending on your size, you should be able to get as low as .06% - .09% (need large volume) for ASX stock

 

[trader_Z]

Here's my situation. I currently don't trade in the Australian market. Frankly, even IB's $6 commish is too high. I do 100s/1000s of trades per day and need commish around $1-$2 per order minimum.

I trade US & European markets & pay the above rates or less. I'd like to trade in Australia but as I said, I can't make a profit paying $6.00/trade!

I've been trading for over 10 years. Brokers do a good job fooling people into believing they're doing you a big favor even opening an account for you!

It's a good con job.

Now I know some long-term "bag-holders" will disagree and wish to continue being fleeced but hey, that's human nature.

So trader_Z, how many trades do you transact per day, what do you trade, how big are your positions, what's you average return per trade? , just wondering why you haven’t found a suitable broker.

BTW, not being cheeky, by telling us your situation someone may be able to recommend a broker for your particular needs.

 

[trader_Z]

Thanks, but that's still too high.

I need rates closer to what it costs at the exchange level.

In other words, I need wholesale rates. Not retail.

Depending on your size, you should be able to get as low as .06% - .09% (need large volume) for ASX stock

 

[cooper1308]

Thanks, but that's still too high.

I need rates closer to what it costs at the exchange level.

In other words, I need wholesale rates. Not retail.

In negotiating, your selling point is volume not number of trades. eg you turn over 50m+ per month as 100's of trades means nothing to some.

 

[DB008]

So if l may ask, Trader-Z, who do you use as a broker for the U.S. and European markets then? I would love to trade overseas and $1-$2 per trade is pretty good.

 

[trader_Z]

In US market, IB is an excellent broker with all-inclusive pricing. You can trade 200 shares for $1.00 Their platform is rock-solid. If your level of experience is good, depending on acct size, there are some that charge even less. But for foreigners it's definetely the broker to start with.

In europe, the brokers who'll negotiate rates are mainly in the UK. Good thing that's where English is the language too. Brokers there have more or less the attitude as in Australia. They like to rip-off the average trader (that's how they make their money!). However, if you have a big enough account & experience, there ARE brokers who will work with you for the same rates as in the US. But they never advertise that fact and they are NOT retail brokers. The point is, *somebody* somewhere is paying LOW commish. If it's not you, then they're eating your lunch.

In this business, commish is the #1 reason for failure when you're paying $10+ per trade.

Good Luck!

So if l may ask, Trader-Z, who do you use as a broker for the U.S. and European markets then? I would love to trade overseas and $1-$2 per trade is pretty good.

 

[trader_Z]

Australian market is not *that* liquid. I'd rather have the best rates on small orders. Otherwise you move the market too much and give away your edge.

What's the point of trading big size in a stock if then you become the market?

In negotiating, your selling point is volume not number of trades. eg you turn over 50m+ per month as 100's of trades means nothing to some.

 

[cutz]

Hi Trader_Z,

I'm still trying to get my head around how you/what you trade due to the critical requirement of getting your brokerage at near wholesale level, do you do hundreds of small lots per day?

Have you considered joining a prop firm?

 

[trader_Z]

In US & Europe markets I trade mostly 200-500 shares per trade. This way I can scale in/out without affecting the market & also have better money management.

Prop firm...Yes, I'd join an Australian prop firm if there is one. So far I can't find any for stocks. There's 2-3 for futures/derivatives but that seems to be it. I don't care much for futures.

I don't need a prop firm in the states as I've got the situation squared away.

But if you know of an Aussie prop firm for stocks (with good commish) that works with remote traders, by all means let me know.

Hi Trader_Z,

I'm still trying to get my head around how you/what you trade due to the critical requirement of getting your brokerage at near wholesale level, do you do hundreds of small lots per day?

Have you considered joining a prop firm?

 

[cutz]

Gotcha trader_Z

All i can suggest is Traderdealer, they combine multiple trades onto one contract note therefore you pay one lot of commish, i don't use them because i don't day trade stocks but they look OK.

Here's the link http://www.traderdealer.com.au/Why-Use-Us.aspx?sec=TradeLikeAPro

 

[wayneL]

Thought I'd resurrect this thread for 2018.

I want to pull some money out of the US and plonk it in the oz market, but just not up on the online brokers. Doesn't need to be iress, but good CMA that interfaces well with other transaction accounts and integrated no fuss margin lending (maybe) is what I'm after.

 

[wayneL]

Oh, and obviously decent options broking

 

[bellenuit]

Thought I'd resurrect this thread for 2018.

I want to pull some money out of the US and plonk it in the oz market, but just not up on the online brokers. Doesn't need to be iress, but good CMA that interfaces well with other transaction accounts and integrated no fuss margin lending (maybe) is what I'm after.

I haven't used them for options trading but I have been with nabtrade for a few years and am quite happy with them. They have margin facilities through NAB Equity Lending. They have a high interest account that you can transfer your cash to between trades and that is paying 2.12% currently.

Do you really want to trade Australian options. I have heard that the market is too thin to be able to trade profitably.