Stock and ETF brokerage costs plunge

Discussion of the Stock portion of the Permanent Portfolio

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Kbg
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Re: Stock and ETF brokerage costs plunge

Post by Kbg » Tue Jan 07, 2020 8:03 pm

I do IBKR Pro. For my trading account I use margin from time to time and I like the execution control PRO provides. The margin savings alone make it worth to me.

I’m confident trade execution will be quite satisfactory.

A couple of things you should be aware of if thinking about going with IB.

It is assumed you have high a degree of knowledge and the platform is built for those types of users (desktop/web). However, their phone app is pretty easy to use and they have more simplified options as well. There has been a lot change recently in options provided that are clearly aimed at less sophisticated traders.

If you go with pro...

You do have to select and pay for quotes. My data package comes in at $14 per mo. Cost is based on what you need/order. You can do free quote snapshots if you trade during the day. There is monthly account fee of $10 for accounts under I think 100 or 110K, however commissions are deducted from the fee on a month per month basis. On the positive side margin is a full 1% lower than free trading and you have full control over how your order executes. I almost always use their price improvement algos and they do make a difference I think.

I would do two things...call them and talk about how you trade and what they recommend. Get a demo account and check out their technology. I would be totally shocked if you ever had the same problem you had with Schwab but you should ask them how they would handle it...but I imagine they will tell you about their various trade execution options/algos and it will be up to you.

I think their main weakness in my view is bonds. Not impressed. If you are a treasury/other bonds guy, I would definitely pay attention to that if you do a demo account.

Here’s my personal take...I have Schwab, Fido, IB and M1 accounts. My favorite two are IB and M1. IB is way advanced and dirt cheap when looked at as a total package. M1 is phenomenal for making buy, add monthly amounts, rebalance and auto reinvest dividends for a fixed allocation portfolio as simple as probably possible. I find Schwab and Fido sorta just middle of the road ok when compared to IB and M1.

The above assessment could change once I get into drawdown mode as I believe the others have pretty good retirement funds management/withdrawal capabilities which M1 and IB don’t seem that robust in.

In sum, best brokerage depends on what is important to you.
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ochotona
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Re: Stock and ETF brokerage costs plunge

Post by ochotona » Wed Jan 08, 2020 5:26 am

Nice report. Honestly I'd just like as simple an interface as possible. I trade but I don't want to be a trader, if you know what I mean. I want to get a good price above all.
Kbg
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Re: Stock and ETF brokerage costs plunge

Post by Kbg » Wed Jan 08, 2020 8:41 am

Without fail, every "free trading" broker is selling your flow and receiving compensation for that flow. So if anyone believes free is actually free, it isn't. If you go IB then there are simplified options. For smaller trades I mainly use their phone app which is quite easy to use.

Spend some time here: https://www.interactivebrokers.com/en/index.php?f=4985

Recommend filtering on IBKR Lite and Price Improvement
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ochotona
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Re: Stock and ETF brokerage costs plunge

Post by ochotona » Wed Jan 08, 2020 9:21 am

"IBKR Lite was designed to meet the needs of investors who are seeking a simple, cost-free way to trade US exchange-listed stocks and ETFs and do not wish to consider our efforts to obtain greater price improvement through our IB SmartRoutingSM system."

IBKR Lite does sell order flow... not sure how that's better than Schwab.
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ochotona
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Re: Stock and ETF brokerage costs plunge

Post by ochotona » Wed Jan 08, 2020 12:47 pm

Schwab and cash.... Grrrrrrr
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ochotona
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Re: Stock and ETF brokerage costs plunge

Post by ochotona » Sat Jan 11, 2020 6:31 pm

Accounts landed very quickly at Fidelity. Trying really hard to find where things are and get used to it. I think it'll be fine. I am going to not take any calls which say SCHWAB on my Caller ID. Don't need the harassment.
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ochotona
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Re: Stock and ETF brokerage costs plunge

Post by ochotona » Thu Jan 16, 2020 5:57 pm

Voicemail from Schwab today. I deleted it without listening to it and blocked the number.
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ochotona
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Re: Stock and ETF brokerage costs plunge

Post by ochotona » Fri Jan 17, 2020 6:46 am

"$0 commissions. That's right – you can trade commission-free with Ally Invest Self-Directed Trading." - not Sophie's Choice
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