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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: John Stichnoth who wrote (22436)	4/9/2000 7:33:00 PM
From: StockHawk	Read Replies (1) \| Respond to of 54805

>>A $12 fee on a $5,000 investment costs 24 basis points. Breaking up the purchase into 4 lots will cost 1 percent. Do that repeatedly through a year, and you've cost yourself some real money. << John, That's a good point, and I'm going to add to it. The commission you pay is the visible, but smaller part of your transaction costs. The larger, hidden piece is the "payment for order flow". That is money your broker receives for directing your trade. It is a percentage hidden in the spread, and unlike a commission it gets larger as the transaction size gets larger. It is not unusual to incure a $12 commission which you see, and say a $112 fee that you do not see on a trade. StockHawk