Re: Scottrade account users....Please read...FYI/ Thekid37/Hai
in response to
by
posted on
Jan 09, 2009 04:38PM
Perhaps I've called this to the board's attention a while back...perhaps not.
From Scottrade's commission schedule.... 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."
OK...our dream comes true (partially, mind you) and the PPS goes to 50 cents. You decide to sell 50K shares, no doubt to recover your initial investment and retain the remainder for better times :>) Let's calculate your commission. 7 bucks plus ½% of the principal value. Looks like 132 smackers to me. Even your recent trade must have cost you more than a $7 commission.......unless they really, really like you or you have some photos of the broker which, shall we say, are somewhat compromising :>):>)
That's why I switched from Scottrade to TDAmeritrade for trading penny stocks.