Negotiating Brokerage Fees

[MovingAverage]

Howdy,

Just curious--anyone here try to negotiate with online brokers on their published trade commissions?

I've never thought about it before but I have a reasonable size account with Bell Direct and I'm a frequent trader. I've recently started live trading a swing trade system with reasonable position size and short hold times (more brokerage fees for BD). I don't like Bell's trade commissions for this system and have started to shop around for a cheaper broker. But before I switch brokers I thought I'd hit up Bell to see if they can do better than their published commission schedule. First time I've done this with a broker so not sure what response I'll get from them but I am curious to know if any one else has tried this with their online broker and how did you get on?

MA

 

[tech/a]

If your doing enough volume you may have success.
But IB is $6 each way

 

[MovingAverage]

If your doing enough volume you may have success.
But IB is $6 each way

I've told BD I'll shift to IB. Let's see how we go. You'll never know if you don't ask

 

[qldfrog]

I did that with BD: called quite a few years ago
and got $10 per trade up to $10k which I find reasonable and I like the access to ETO/warrants etc and the fact I have one login for 3 different accounts and decent web interface and tools
I do not own shares in BD

 

[Rsthree]

I will be starting on my trading program soon so have been looking into brokers.

Self Wealth charge $9.50 and shares are Chess Sponsored. I read that IB aren't Chess Sponsored but in reality I'm not sure how much of a risk that represents.

Last time I traded , over 12 years ago, I was paying commsec around $29 a trade, so the above options are certainly looking more attractive.

 

[Dona Ferentes]

I don't know about negotiating, but the platform I'm familiar with offers a default setting then, curiously, there is an option that allows a choice. Rather than 30.80 (28 + GST) wouldn't you choose 0.11% for smaller sums when placing a trade? Someone forgot and let it remain as binary option. Ah, techies!

 

[MovingAverage]

I did that with BD: called quite a few years ago
and got $10 per trade up to $10k which I find reasonable and I like the access to ETO/warrants etc and the fact I have one login for 3 different accounts and decent web interface and tools
I do not own shares in BD

That's good to know so will be interesting to see what they come back to me with. I spoke with them on the phone this arvo and the guy on the phone said I see what we can do but I've got to talk to my manager. At least it wasn't a flat out No.

 

[Dona Ferentes]

"I'll see what we can do but I've got to talk to my manager."

Lol. Are you sure you're not buying a second hand car?

 

[frugal.rock]

I tried it with Westpac, didn't get anywhere. Should have another go.
Not happy about $20 per trade, but am finding the 1 day offset facility keeping me with them, for now.

So if IB not Chess sponsored, and they go broke, do you lose your hard-earned? maybe a pittance paid after the vultures do their thing...?

F.Rock

 

[Austwide]

So if IB not Chess sponsored, and they go broke, do you lose your hard-earned? maybe a pittance paid after the vultures do their thing...?

F.Rock

That's how I understand it, and even then and if, it could take a long time

 

[Dona Ferentes]

I think what I was trying to say is: everything is negotiable, if there's a capacity to do so. CommSec, Westpac and nabtrade don't do discounts, at the retail end, but E-Trade (ANZ) did. Anything that has the capacity to go white label will have a range of brokerage settings. But you have to ask, and bring volume, to get them to want you.

 

[HelloU]

rhetorical: r u getting iress and feeds for free - and live? is your iress chi inclusive? Are you able trade "free" without money in account till T+2 Can you do free off market transfers to linked tax entities? Can you get one of their traders to help "prepare" a large order for you at no additional costs? Do partial orders stay live at end of day - or killed? Do you get the choice of which market to route the order? Can you easily get one of their traders to place an order outside of the "allowed" percentages for low liquidity stocks for free? If you need their info for tax then how long till you get it (nominee are always after eofy - sometimes well after - for divs/franking info)
Things in my head other than brokerage

 

[tinhat]

rhetorical: r u getting iress and feeds for free - and live? is your iress chi inclusive? Are you able trade "free" without money in account till T+2 Can you do free off market transfers to linked tax entities? Can you get one of their traders to help "prepare" a large order for you at no additional costs? Do partial orders stay live at end of day - or killed? Do you get the choice of which market to route the order? Can you easily get one of their traders to place an order outside of the "allowed" percentages for low liquidity stocks for free? If you need their info for tax then how long till you get it (nominee are always after eofy - sometimes well after - for divs/franking info)
Things in my head other than brokerage

not sure there was a question there. Answer: No.

 

[frugal.rock]

You raise a fair few points there, HelloU.
Things to consider other than cost.

Can say Westpac stick's it's fingers in and close a partial trade at eod.
Happened again today.
They will sometimes put trades on Chi-X, but they don't give any live data for it afaik.
Bit annoying sometimes, not to mention, how is that ethical?
I mean, they show live data from one market, yet put your trade on another market.?!
Throws T/A out the window for the hopefully quicker trades, make's it a waste of time!
F.Rock

 

[qldfrog]

BD now keeps a trade open and complete it on the second day with just the one fee.was not like that a few years ago.so good
Indeed i did mention the numbers of trades per year..1000's at the time to get the discount

 

[cutz]

First time I've done this with a broker so not sure what response I'll get from them but I am curious to know if any one else has tried this with their online broker and how did you get on?
MA

Hi, Not sure about Bell but yeah I've managed to get a better rate than published with a big four, although still way more expensive than IB.

Give them a buzz and have a chat.

 

[HelloU]

You raise a fair few points there, HelloU.
Things to consider other than cost.

Can say Westpac stick's it's fingers in and close a partial trade at eod.
Happened again today.
They will sometimes put trades on Chi-X, but they don't give any live data for it afaik.
Bit annoying sometimes, not to mention, how is that ethical?
I mean, they show live data from one market, yet put your trade on another market.?!
Throws T/A out the window for the hopefully quicker trades, make's it a waste of time!
F.Rock

(i might be off line here so apologies if so)

all etf trades kill eod (in my experience). Between that and the spread is why they are tricky to short term for me.

Someone shout if they have found a system that will not do that kill please.

 

[MovingAverage]

So it pays to ask...they’ve given me a good discount on their listed commission schedule.

 

[frugal.rock]

So it pays to ask...they’ve given me a good discount on their listed commission schedule.

Disclosure clause?

 

[MovingAverage]

Disclosure clause?

putting on my Pauline Hanson look...please explain?

not sure what you're asking, but are you asking am I allowed to tell you?