Cheaper execution - UK/European Shares

[Salvodelli]

All,

Looking for some feedback. I am currently involved in a very innovative project which if successful will be able to significantly reduce execution costs for retail/day traders looking to trade UK and European (e.g. Nokia, Fiat, Bayer AG) stocks.

I have read a number of threads on t2w suggesting that day trading is very difficult at best due to wide spreads, stamp etc.

Do posters feel that an ability to significantly reduce commissions helps get around this issue?

With reduced commissions (say £5 or below) is the 0.5% stamp tax still to significant?

Are spreads too wide to allow efficient frequent trading regardless of better execution costs?

Interested to hear any feedback.

 

[Jock Strap]

At present it is feasible to day trade some of the more volatile and high volume UK stocks, such as miners like XTA and RIO, if you have a decent sized trading fund and a good online broker. But it is definitely the 0.5% stamp duty that has much more effect than either the commission or spread on net profit, and this will always be prohibitive to those looking for the quick in and out.

That said, I am sure there would be much demand from frequent traders like myself (I transact 10-30 trades a month) for a broker that can offer significantly reduced execution costs.