[tomcho21]

I have a question/comment about trade commissions. I am currently using interactive brokers trading small cap stocks with prices averaging $1.00. Their commissions seemed low at $0.01 per share compared to other brokers but as my trade sizes increased they don’t seem like the best choice.

I am thinking of switching to another broker that charges as flat rate (eg. $9.95 plus ECN fees) because there is such at large difference between the commissions.

For an example if I use IB to trade 10,000 shares @ $1.00 my commission will be $100.00 but with a flat rate broker 10,000 shares @ $1.00 = $9.95 + $30(ECN fee $0.0037 * 10,000) =$39.95. That’s a big difference over the long run.

I have no problem with IB and like using the TWS software but with that much of a difference I think a different broker will suit my needs.

Just wondering what everyone’s thought on this are.

[Trvlwanderer]

You should only be paying $.005. Not sure where you are getting .01, that is wrong.

Go the unbundled route and get the rebates for adding liquidity. If you are trading 10,000 shares, you will not be able to beat IB.

Another otpion would be SOG for $3 per side. You get no platform, but very cheap.

[tomcho21]

I am in Canada trading the TSX which is 0.01 bundled and .008 unbundled.

[SunTrader]

My opinion only - but the problem is trading $1 stocks not the commission rate.

But yes a flat rate broker might be the solution.