Hi Tom, I use Scottrade, they are $7.00 for listed stocks (online trades), OTC are $22.00 plus .02/share and they have to be done on the phone...
I used to think this was very expensive, for example, 2000 shares of OTC would be $62. So It's definitely not worth it with commisssions like this to buy only a small amount of a stock, I was reading Friday where people were buying 100 or 200 shares of things, I couldn't even make up the commissions for small trades like that, unless the stock moved a bunch!
While OTC's must be placed on the phone, I have never had to wait more than 20 seconds to place a trade. The phone is picked up by the 2nd or third ring; Usually by my local broker, occasionally call volume dictates that the call is forwarded to a national call center, but either way, I have never had a call-in order take more than 2 minutes from placing the call to seeing the order executed on my screen.
So although it seemed very expensive to me at first, I realize now, that sometimes seconds count when trying to sell a falling BB, (or buy a rising one) so I probably make up the commission by being able to sell quickly and get the higher bid (or lower ask as the case may be).
On line executions seem instant; by the time I push the "submit" button, then click on "order/executions", it will usually have moved from order to execution already. Those are $7.00 and I have never had a problem on-line either, even on very busy days.
Just my 2 cents worth, thanks to everyone for sharing their experiences, because I would like to find cheaper online OTC capability, if I could keep the quick executions and great customer service I have now.
BTW, for the poster considering Webstreet, I have seen it discussed quite a bit on Daniel Miller's thread, if I recall there were some people having problems...but check it out.
Kathy |
