Re: Stock and ETF brokerage costs plunge
Posted: 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.
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.