There are many differences between online brokers and professional trading firms, and you may not realize that you can have professional trader experience and dump your online broker!
Online brokers such as E-Trade, ScotTrade, Ameritrade and many others are the only way that most people find the market to make trades. For savvy investors with an active trading style or larger balances, however, there are better options that you may not be aware of.
A professional trading firm, one that specializes with even the most sophisticated of investors, can offer the same level of professional service to non-professional investors, in much the same way the online broker can, but with a much greater level of sophistication and technology.
A professional trading firm like Great Point Capital can give you the same retail account management, with the latest in technology, sophistication and experience for maximum trading results.
Costs of Trading with an Online Broker vs Pro Trading Firm
Online brokers usually charge a flat fee of anywhere from $4.95-$9.95 per trade, while this may look enticing, professional trading firms offer per-share commissions that can be much less!
Commission fees from most professional trading firms start around $.0035/share, which equates to a 100-share order with a commission of only $0.35!
Working with a pro trading firm allows you to break your orders into smaller pieces, giving you more control with less market impact. Rather than sending 1000 shares all at once, you can price average your entry points and work smaller orders more efficiently, resulting in much lower costs to you.
Exchange fees are the other costs of trading at pro firms, and can vary from as much as $0.003/share to take liquidity, to being paid $0.002/share to add liquidity.
That’s exactly right - the online brokers don’t want you to know that they get paid to put your order on the market!
Placing 1000 shares on the bid, and getting filled, means you pay only $3.50 in commissions, but also get $2.00 back from the venue, for a net commission of only $1.50!
It is very important to know and understand what all your trading fees are to buy and sell, and to be aware of any miscellaneous fees that surface. Great Point Capital can help you in evaluating your current fee structure with an online broker, and compare to fees from a professional trading firm.
Great Point Capital has been serving the trading community since 2001. We are one of the very few firms utilizing the Takion Software Platform, enhancing the quality of trades with fast and high-quality order execution. We offer professional and experienced account and wealth management, including management of retail accounts. To earn maximum earnings on your trades, contact us today to speak with one of our knowledgeable trading experts.