Freetrade was the perfect trading website for the small time trader. Effective April 29, 2005 Freetrade will convert to Ameritrade IZone. The $0 commissions offered by Freetrade will be replaced with $5 commissions by Ameritrade IZone.
Does anyone have any suggestions about online brokers that have no commissions, margin, and less than $10,000 initial deposit? Thanks.
Posted by McBuyInTime on :
I'm using AmeriT and I never knew that was such a wonderful beast....how does a venture without any commission at all work, I wonder...
(I just wish AmeriTrade wasn't so sluggish with my olde dial-up connection...)
Posted by Machiavelli on :
quote:Originally posted by McBuyInTime: I'm using AmeriT and I never knew that was such a wonderful beast....how does a venture without any commission at all work, I wonder...
(I just wish AmeriTrade wasn't so sluggish with my olde dial-up connection...)
Ive often asked myself that.. dont they have overhead? like employees? rent? etc.. etc.. <shrugs> just wondering..
Posted by osubucks30 on :
Maybe that is why it will not be offered anymore.
Posted by GT500 on :
Same way some banks do. They'll give you 1% interest a year and use your money to invest and get more..
Freetrade probably did the same, tried to use money from their customers to invest but it didn't work out. Just think how much money you have in your account and how much, on average, is cash every day.
Posted by Machiavelli on :
1% isnt much and if they loaned it out interest rates are still low.. too low to make much money on investment..
Posted by gphs98 on :
They offer margin accounts. If you use the margin you pay interest. Also, only the first 20 trades a month are free. After that its $3 a trade. Freetrade is part of Ameritrade so I guess they shared some expenses. I just wish there was another compnay like it. Oh well, I guess I will have to pay the $5 commissions.
Posted by sharkone on :
Lowtrades.com has very low commission fees. Only $5 for all trades, except for pink sheets over 100,000 shares. After 100,000 shares it is an additional 1% of the principal. So a $500 purchase/sale on Lowtrades would be $10, or $5.00 for the first 100,000 shares, then 1% of the $500, or $5, so a total of $10. Check it out. I might transfer my Ameritrade account over to it.
Sharkone
Posted by EverGreen on :
sharkone - correction
Lowtrades charge (max) 1% misc.fees on ALL trades above 100000 (any stock)
everything is good but this extra misc.fees is killing you if you trade sub-pennies
Posted by Bob Frey on :
Brokers can make money by routing orders to ECN's and Market makers they have deals with.
Posted by Machiavelli on :
quote:Originally posted by sharkone: Lowtrades.com has very low commission fees. Only $5 for all trades, except for pink sheets over 100,000 shares. After 100,000 shares it is an additional 1% of the principal. So a $500 purchase/sale on Lowtrades would be $10, or $5.00 for the first 100,000 shares, then 1% of the $500, or $5, so a total of $10. Check it out. I might transfer my Ameritrade account over to it.
Sharkone
Choicetrade.com is better... check out their website...
Posted by smcinaz on :
How are Choicetrade's order fills? Fast? Do you ever get the slighly better than bid or ask prices on trades like Freetrade and Ameritrade sometimes give?