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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Ken Adams who wrote (43)	6/6/1999 8:39:00 AM
From: Eric P	Read Replies (2) \| Respond to of 18137

Ken: Why would you daytraders pay $25 per ticket? I don't understand this when there are so many places you can get in for half (or less) than that amount. I think the typical commission rate for a direct access daytrading firm is in the range of $18-25/ticket. The SEC fees on the sell side will further increase this slightly. Personally, I pay about $21/ticket. Most traders agree that there is a balance between low commission rates and good service, order executions, system reliability, etc. However, I agree that $25/ticket is certainly on the high end of the range for commission rates.

To: Ken Adams who wrote (43)	6/6/1999 8:48:00 AM
From: Don Pueblo	Read Replies (1) \| Respond to of 18137

Fast execution is the reason I pay 22 or 23 bucks (depending on the ECN). I have one-second execution. I never wait. Never.

To: Ken Adams who wrote (43)	6/8/1999 1:34:00 PM
From: Bilow	Read Replies (2) \| Respond to of 18137

Hi Ken Adams; That $25 per ticket seems a little steep to me, too. But there are guys making a living at it. My commissions are low enough that it is profitable for me to move 100 shares 1/16th of a dollar. (Buys a cup of coffee.) I know this isn't very much money, but I have done this as short as 2 seconds. (Actually, it takes longer than that to record the trade.) On the other hand, having to wait a while is something that people trading fast moving stocks just can't put up with. Selectnet orders can't be cancelled for 10 seconds, and sometimes having to count out those seconds can be horrible. But people who intend on holding for an hour or two, probably don't need to worry about the last 1/16th that they get in at. And those $25 commissions are probably reasonably small as well. For high speed traders to make a living, they have to be able to average around 4 cents per share (gross) against the market, at least at the place I trade at. This is less than 1/16th, but is a lot harder to do than it sounds... -- Carl