Which stock broker to use?
- Thread starter Chaka1988
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As a follow-up: I have since found out that the Australian OpenMarkets is an online broker run by Paritech, who are based in Melbourne. As I've been using Paritech's Pulse for years, I've opened an account with OM and am stoked by their attention to detail, not to mention pricing and ease and speed of execution.
Last week, I also had my first NSX trade executed.
So_Cynical
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After you mentioned openmarkets in another thread i had a look and found a gotcha, they issue trade confirmations when an order is filled or at the end of everyday for part filled orders and charge per confirmation, so a situation where it took 3 days for a limit order to be filled minimum brokerage would be charged per day/confirmation.
Part filled orders is a somewhat rare event for sure, but im in one now and would hate to get charged 2 lots of brokerage...painful enough to have to amend my order and move the buy price up.
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Re: Which online trading account should I open for share trading !
Hi I am currently looking for a broker that I can use to start day trading. I want to be able to trade US shares as it suits my daily routine to be trading at night, but I am having trouble finding the best broker for the job. My friend who taught me how to make money day trading is american and recommended scott trade who do not allow Australians to use their services which is a bit of a let down as $7 per trade is not at all bad. So far this list is the best info I can find however I still dont know which one would suit me best. Any suggestions as to which would be best to go with?
Hi I am currently looking for a broker that I can use to start day trading. I want to be able to trade US shares as it suits my daily routine to be trading at night, but I am having trouble finding the best broker for the job. My friend who taught me how to make money day trading is american and recommended scott trade who do not allow Australians to use their services which is a bit of a let down as $7 per trade is not at all bad. So far this list is the best info I can find however I still dont know which one would suit me best. Any suggestions as to which would be best to go with?
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Re: Which online trading account should I open for share trading !
0.08% of trade value is Interactive Brokers commission on Australian trades. On US shares, it is USD0.005 per share, minimum USD1.00 per trade. This can be quite cheap when trading high value stocks. For instance, I have never paid more than USD1.00 (the minimum) when trading AAPL (Apple). On sells, there is an additional SEC fee which is negligible (usually only a few cents). IB also have a minimum commission of USD10.00 per month if commission from trading (all shares, US and Aussie etc) are below it. For example, if your commission on all trades for the month is USD8.50 (after currency conversion of non-US trade commissions), you will pay an extra USD1.50 to bring you up to the monthly minimum.
0.08% of trade value is Interactive Brokers commission on Australian trades. On US shares, it is USD0.005 per share, minimum USD1.00 per trade. This can be quite cheap when trading high value stocks. For instance, I have never paid more than USD1.00 (the minimum) when trading AAPL (Apple). On sells, there is an additional SEC fee which is negligible (usually only a few cents). IB also have a minimum commission of USD10.00 per month if commission from trading (all shares, US and Aussie etc) are below it. For example, if your commission on all trades for the month is USD8.50 (after currency conversion of non-US trade commissions), you will pay an extra USD1.50 to bring you up to the monthly minimum.
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I find the other side of the coin more interesting:
If I find a stock likely to move in my direction, I can start buying a few and see if the trend continues; if it doesn't, I stop out at minimum loss; but if it continues, I add on the way up. At the end of the day, I'll only pay one brokerage, regardless of how many bites I've taken.
I've even traded swingers that way, bought low, sold at Intraday resistance, bought back on pullback, then sold into the Close. Still cost one brokerage for the combined Buy orders, one for the total sold. And the ones I keep in the end have usually a lower cost base (plus some possible trading credits to boot) than if I had placed one big order somewhere in the middle.
It all depends on your risk profile and how big an exposure you're comfortable with.
I also make trades like the one you describe; and I usually know at the outset which method I want to apply: Intraday swingers/ multiple bites, or one large position that may take more than a day to fill. For the latter, I operate another broker account (with Westpac, if someone wants to know) that lets me buy or sell at limit over several days if necessary. If, after an order has been partially filled, I believe the rest can sell at a higher price or be bought for less, I even amend the remaining order accordingly and won't be charged another cent of brokerage on subsequent days.
So you see: With some advance planning, there is advantage in both methods. "Horses for Courses."
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Re: Which online trading account should I open for share trading !
Awesome I will look into this. I also thought that was the one to go with but wanted to make sure. One more question, is there a recommended minimum amount of money I should start trading with? If so how much would you recommend?
Awesome I will look into this. I also thought that was the one to go with but wanted to make sure. One more question, is there a recommended minimum amount of money I should start trading with? If so how much would you recommend?
CanOz
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Re: Which online trading account should I open for share trading !
As much as you feel comfortable losing....
As much as you feel comfortable losing....
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Re: Which online trading account should I open for share trading !
Lol only reason I ask is because before researching heavily I found westpac online investing and they charge somewhere around $14 per trade and with high frequency trading I couldn't see any less than $10,000 being worth my while if I used westpac. So let's say I put $300 aside to day trade with IB would that be enough to start (practicing more or less?) given that I could buy then sell and buy again all in the span of 5 minutes or so (time depending of course on my trailing stops.)
As much as you feel comfortable losing....
Lol only reason I ask is because before researching heavily I found westpac online investing and they charge somewhere around $14 per trade and with high frequency trading I couldn't see any less than $10,000 being worth my while if I used westpac. So let's say I put $300 aside to day trade with IB would that be enough to start (practicing more or less?) given that I could buy then sell and buy again all in the span of 5 minutes or so (time depending of course on my trailing stops.)
CanOz
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Re: Which online trading account should I open for share trading !
Think of it more as how much you're prepared to risk per trade. Then work your costs into it. If you are day trading stocks then your costs are a big factor and you'll need to pick the cheapest broker.
Its always good to work backwards, so if you want to risk 500 AUD per trade, but only want this to be 1% of risk capital then you'll need 50k. Make sure this 50k can last a while by only risking 1% and that its ok to lose it all...
Think of it more as how much you're prepared to risk per trade. Then work your costs into it. If you are day trading stocks then your costs are a big factor and you'll need to pick the cheapest broker.
Its always good to work backwards, so if you want to risk 500 AUD per trade, but only want this to be 1% of risk capital then you'll need 50k. Make sure this 50k can last a while by only risking 1% and that its ok to lose it all...
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Re: Which online trading account should I open for share trading !
Thank you, this forum had been very helpful!
Thank you, this forum had been very helpful!
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Re: Which online trading account should I open for share trading !
Sorry to re quote something I already quoted but I have done some math in regards to my previous starting amount question. IB charges .08% of total trade with a minimum of $6. As I understand it I will be charged $6 commission if my total trade costs $50 or if it costs $5,000 and found that in order for my to get the most out of my trade I need to be using upwards of $7,500 in order to pay the least commission compared to the total. I was going to dip my toes in the water with just a couple of hundred dollars but will need to rely on much larger stock price increases in order to make sure I at least clear the commission costs per trade ($6 buy + $6 sell need to gain at least $12 on a share in order to stay afloat.) I Think while I save for my $7.5k I will continue to practice on howthemarketworks.com with theoretical money, with it set to $6 trades and a handicapped starting amount of maybe $1,000 to get a rough idea of when to begin. Do you think I am making the right choice here?
As much as you feel comfortable losing....
Sorry to re quote something I already quoted but I have done some math in regards to my previous starting amount question. IB charges .08% of total trade with a minimum of $6. As I understand it I will be charged $6 commission if my total trade costs $50 or if it costs $5,000 and found that in order for my to get the most out of my trade I need to be using upwards of $7,500 in order to pay the least commission compared to the total. I was going to dip my toes in the water with just a couple of hundred dollars but will need to rely on much larger stock price increases in order to make sure I at least clear the commission costs per trade ($6 buy + $6 sell need to gain at least $12 on a share in order to stay afloat.) I Think while I save for my $7.5k I will continue to practice on howthemarketworks.com with theoretical money, with it set to $6 trades and a handicapped starting amount of maybe $1,000 to get a rough idea of when to begin. Do you think I am making the right choice here?
CanOz
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Re: Which online trading account should I open for share trading !
I'm all for using real money to trade with at some point so you get used to carrying risk, but for 'practice' use a paper trading platform such as the one provided with Interactive Brokers. You need to be confident with the orders etc. I've posted a video on how to enter bracket orders .
I would suggest you paper trade with IBs platform first to get used to using the application as well as practicing your trade plan.
IB is one of the cheapest. I can't comment on the cost for ASX stocks but for the US markets its so insignificant that i don't even concern myself with it.
I'm all for using real money to trade with at some point so you get used to carrying risk, but for 'practice' use a paper trading platform such as the one provided with Interactive Brokers. You need to be confident with the orders etc. I've posted a video on how to enter bracket orders .
I would suggest you paper trade with IBs platform first to get used to using the application as well as practicing your trade plan.
IB is one of the cheapest. I can't comment on the cost for ASX stocks but for the US markets its so insignificant that i don't even concern myself with it.
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Re: Which online trading account should I open for share trading !
Thank you that video will get played several times while I try this out. If I have any further questions about IB and IB paper trade platform is it ok if I inbox you about it? I'm sure once I understand the basics of how it works I will be able to stand on my own 2 feet.
Thank you that video will get played several times while I try this out. If I have any further questions about IB and IB paper trade platform is it ok if I inbox you about it? I'm sure once I understand the basics of how it works I will be able to stand on my own 2 feet.
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Most people lose money via secret formula, secret seminar, secret stocks, secret institution
that they think they are the only one having access to these information
If you are discovering something and have not accumulate the stock, then it is wise to keep
it under wrap until you get your quota other than that most secret stuff are just losing venture
The stock is HAS
https://www.google.com/finance?client=ob&q=ASX:HAS
Seems to be sitting pretty still. What are peoples thoughts on this stock? I have heard it could go up quite a bit.
Julia
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Total Shareholder Return (avg annual rate)
1 Yr 3 Yr 5 Yr 10 Yr
-12.4% -48.7% -17.4%
Flat as flat can be after being in a clear downtrend. Minimal liquidity.
Why on earth would you put good money into something like this when you have a plethora of sound companies with proven returns to choose from?
1 Yr 3 Yr 5 Yr 10 Yr
-12.4% -48.7% -17.4%
Flat as flat can be after being in a clear downtrend. Minimal liquidity.
Why on earth would you put good money into something like this when you have a plethora of sound companies with proven returns to choose from?
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Quite contrary to your previous post asking for safe investment!?
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Noted. Thanks for the observation.
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Where do I find info on these companies?
Just looked at the charts for HAS, looks like it shot right up after this period, around june??
Someone would've cleaned up. Did you invest your 20k into this stock ozibroker?
