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Message: About Scottrade

About Scottrade

posted on Dec 22, 2008 07:06AM


From the Scottrade site (bolding mine).

"For stocks priced under $1, add ½% of the principal value to the commissions shown. Some foreign and pink sheet stocks must be traded with broker assistance. Commissions are charged on a per order basis. Limit orders executed over multiple days and orders modified after a partial execution on the same day will be treated as separate orders for commission calculation purposes. A majority of orders must be executed online to qualify for the online commission rates. Scottrade receives compensation for certain equity and option orders as described more completely in our Order Routing and Execution page. Generally, this compensation will take the form of payment for order flow, profit sharing arrangements, liquidity rebates or possible trading profits if Scottrade executes the order as a principal. For non-online accounts, the commission for market and limit orders is the broker assisted rate plus .02 per share for stocks that are $1 and above."

This is why I went to Ameritrade. Consider: Most of us, I assume, have at least 100K shares in EDIG. OK....after a group prayer, at some time in the not too distant future, the price goes to 50 cents. If you choose to bail at that time you realize $50K. Scottrade charges you 7 bucks (for online trades) plus 250 smackers for the trade for a total of $257.Ameritrade?.... $9.99.

OK....you decide to wait and bail at 90 cents. Scottrade grabs $457 and Ameritrade gets (let's all shout it out with a grrrreaaat exuberance)....1....2....3 $9.99!!

If you want to wait for $12 per share....well....I'm not going to insult anyone but............:>):>)

Seems simple to me. Nome sain?

Do I have to solicit comments? Please be gentle. :>):>):>)



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