Moving Away From Zero-Commission Broker

Nowler

Experienced member
1,517 225
Hey folks!
Nothing important, but thought it was worth saying.

Recently opened an additional brokerage account in order to cover the shortfall in companies offered by my zero-commission broker.

First impressions are the fee's!
The new account has relatively low fees, so certainly not complaining.
What I was shocked by was the fee cost as a percentage of the position I was about to buy... 20%+!

With my zero-fee broker, I could just buy a little of this and a little of that each month when I got paid - topping up my current positions.
I can tell you that I will absolutely NOT be able to do that with this broker! lol
Instead, I will have to buy bigger tranches to get more bang for my buck.

This will be interesting as I certain have a level of FOMO and have been topping up on positions when I have the money, rather than waiting on the correction I expect to happen. So opening this new account could be a very valuable lesson in restraint.

Interesting times...
 

nikkiscy

Newbie
4 0
lol, I shut down my accounts on all 0% commission. they all advertise like that but they cranch you on the spread
 

Nowler

Experienced member
1,517 225
Well they certainly aint charging 0% commission for the good of their health :)
 
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MasterOfCoin

Experienced member
1,228 478
...." 0% commission. they all advertise like that but they cranch you on the spread"

Well, of course they recoup on the spread, they're not doing charity.

The point being missed in that attitude, is that for smaller trades, that's a damn sight cheaper than what a fixed commission charge would cost. Thus facilitating a lot of potentially profitable trades that would otherwise not be viable.

For those with ambition, but modest resources, this allows an entry to not only profitable trading, but also to spreading the risk across multiple trades that would be loss-making with more conventional commission based brokers.

I'd say that was a win-win for everybody involved.

Of course, those who'd rather pay hefty commissions to make fat cat brokers richer at their own expense, by all means carry on, giving money to the already rich is always the easiest thing to do.

:D
 

Nowler

Experienced member
1,517 225
... The point being missed in that attitude, is that for smaller trades, that's a damn sight cheaper than what a fixed commission charge would cost. Thus facilitating a lot of potentially profitable trades that would otherwise not be viable.

For those with ambition, but modest resources, this allows an entry to not only profitable trading, but also to spreading the risk across multiple trades that would be loss-making with more conventional commission based brokers...

Well said.
 
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nikkiscy

Newbie
4 0
...." 0% commission. they all advertise like that but they cranch you on the spread"

Well, of course they recoup on the spread, they're not doing charity.

The point being missed in that attitude, is that for smaller trades, that's a damn sight cheaper than what a fixed commission charge would cost. Thus facilitating a lot of potentially profitable trades that would otherwise not be viable.

For those with ambition, but modest resources, this allows an entry to not only profitable trading, but also to spreading the risk across multiple trades that would be loss-making with more conventional commission based brokers.

I'd say that was a win-win for everybody involved.

Of course, those who'd rather pay hefty commissions to make fat cat brokers richer at their own expense, by all means carry on, giving money to the already rich is always the easiest thing to do.

:D
well, crypto trading platforms, they charge just 0.10% or 0.25% per transaction fixed. I won't name the specific platforms because im not sure if is allowed but one of them has also forex pairs.
 

MasterOfCoin

Experienced member
1,228 478
well, crypto trading platforms, they charge just 0.10% or 0.25% per transaction fixed. I won't name the specific platforms because im not sure if is allowed but one of them has also forex pairs.
Yes, true indeed.

And it's good to explore alternative trading platforms.

Although, that aside, this topic is specifically about the OP opening an additional brokerage account to trade in a wide range companies stocks.

Not that OP might also consider trading in crypto or forex pairs as well, but that's not the topic here.

🙂
 
 
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