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Strategies & Market Trends : January Effect 2007 -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (32)	1/1/2007 3:23:52 PM
From: RockyBalboa	Respond to of 94

Hello Q. Regarding your RT commission. You are correct that the fee is more like a half penny a share, or less (0.2% on each side of the trade). Perhaps you also noted that the broker recently made a subtle change: the max is now: "0.2% of trade value plus exchange/ECN fees" and ..." clients should be aware that the routing may deliver the order to an exchange with a better quoted price but with substantially higher fees. In particular, clients should understand the ECN charges for removing liquidity when sending marketable orders for low prices stocks (under $2.50). See below for details on exchange fees." This means that even in the bundled fee schedule the 0.2% no longer apply. Perhaps the broker noticed that he is losing money to ECNs when he charged clients only 0.2% (flat, max) but found that the major part of the orders particularly for low priced stocks removes liquidity from ECNs and he pays fees well ahead of 0.2%. What doe it mean: Guess I trade my favorite dog, GNTA, at 44cents and I can not add liquidity and wait for the order to fill but rather buy from the ask: The fee for removing liquidity is 0.003 per share, which is 0.68%. Add that to the 0.20% shown by the broker and the fee is now 0.88% rather than 0.20%.