How much does brokerage cost?

C2
1

Hi All,



I’m just wondering how much is brokerage fees for my subscribers since my system will be trading frequently on a daily basis and will only have to get started is with 10000 in the subscriber’s starting model account.



Cheers,



San

2

San, my system (Mutual Fund Killer) trades about 40% of days. I think it is reasonable to assume that subscribers are using a discount broker like Interactive Brokers. Their sample rates are as follows:



100 Shares @ USD 50 Share Price= USD 1.00



1,000 Shares @ USD 50 Share Price = USD 5.00



1,000 Shares @ USD 0.50 Share Price = USD 2.50



You may wish to mention this in your system description. I hope that helps.



John

3

But I want to know if I can trade frequently with the discount broker?

4

That depends on what you call - ‘Frequently’ - If you are doing interday trades you will need an account with a minimum equity of 25K - see link for rules:



http://en.wikipedia.org/wiki/Pattern_day_trader