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kilauea

03/06/04 8:54 PM

#65595 RE: stox99 #65585

kdkd,
Interesting reply.

What broker to you use? What do you pay in commisions?

I think it might have a lot to do with how much you're investing. Perhaps if each trade were for 10K plus, I could see paying $20-$50 in commision, since it's a small fraction of the transaction, and like you say the fills may be a lot better. But if you're like many people here (I imagine; maybe just me!) many orders are for just a few thousand dollars and then cost of the full-cost commision more then negates the better fill price.

Personally, my experience with Freetrade is that it has a large psychological effect on my trading. Lots of times I'll buy something, just a taste, to see what's happening . . . and then sell it a few hours later if I'm wrong. Often I sell it for the same price I bought it at, meaning it's a no-cost transaction with no commisions ($3 or less). Also, I'm much more likely to sell off winning positions in small increments--something I'd never do if I were paying $20+ on each sale with another brokerage. Thus I've found I'm locking in profits more than I used to.

By the way, I've been following your picks with interest (and am in a few). You have a good eye. Keep up the good work!

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babycakes

03/07/04 3:42 AM

#65693 RE: stox99 #65585

I find it very fitting that the time that we are discussing the positives and minuses of online brokerage houses, barrons has a cover article on the very issue. so are you talking about browser vs. direct issues?
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DCschmoeka

03/07/04 6:26 PM

#65928 RE: stox99 #65585

Excellent and very professional post. The losses in terms of "slippage" are much higher than commission, and whoever has the funds to flip substancial amounts in the OTC markets must go for direct access brokers imo.

However, and that applies to most posters on this board imo, if your funds are limited and discount brokers are your only option, you should go with the cheapest ones - for both financial and moreover psychological reasons, as Omni pointed out already.

Commissions kill small guys. Big boys are only afraid of bad fills.