posted
Greetings all! I am the newbie and have a question about etrade. The following is a little confusing to me being absolutely new to stocks and expecially pennies. Anyway, here are two quotes in question from the commissions page:
Listed trades over 5,000 shares (for trades 1-26 per quarter) $0.01 per share for the entire order plus the applicable commission
For listed securities trades over 5,000 shares, add $0.01 per share to the entire order. An ECN fee of $0.005 per share will be added to the regular commission for each executed Extended Hours trade and trades executed through Power E*TRADE Pro at an ECN.
Now, I understand the ECN fee fine but it is the .01 per share that I am questioning. What if I am buying a stock worth hypothetically, .017 - and of course the quantity will be over 5,000. Any help understanding this is greatly appreciated.
quote:Originally posted by the_dude: For listed securities trades over 5,000 shares, add $0.01 per share to the entire order. An ECN fee of $0.005 per share will be added
Hmm. With fees like those, it is well nigh impossible to make money on penny stocks, which is of course WHY they add those fees to it. I do know someone who has an e-trade account who buys mostly pennies, but he's a power trader and i'm not sure if the fees are different for that or not.
How long ago did you get your account? Would you consider switching to lowtrades, freetrades, or choicetrade? (these brokeras all have low fees for pennies, which will make it much easier for you to make a profit)
posted
I have traded with E*TRADE for many months, and had the same concerns before I opened the account, so I asked them about this very thing.
The .01 per share trades only apply to securities with a 1 - 3 letter symbol, so pennies are excluded since they have a 4 letter symbol.
The ECN usually only applies in after hour trading, and I have never been charged that fee.
I have a power E*TRADE account, and have traded 15m shares at .007 and trade pennies frequently. I only pay $9.99 per trade. Unless I place a trade for say 6000 shares of LU at $3.50 per share then they add $60 to the fee for a trade of $21,000
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