Investing

TD Waterhouse, is it possible to get cheaper trades?

  • Last Updated:
  • Jul 9th, 2013 6:26 pm
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Nov 27, 2009
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He clearly says buying index funds. Not buy and hold RIMM. If you want an article and 30 years worth of data to prove that its correct go to canadiancouchpotato.com.
SCEES8 wrote: Where's the article to support this opinion?

Doesnt it depend on the person too. How good you choose your picks. Say you were a buy and hold type. Maybe you invested in RIM a few years ago and held onto it till now. You've probably lost money as their stock price tanked quite a bit. Its also going up and down nowadays like crazy its hard to tell what is going on. Buy and hold doesnt always win either. In this case, if youre a RIM investor, not trader, you probably lost net worth. whereas those now trading on the RIM volatility have walked away with money
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SCEES8 wrote: Yeah, $9.99, let alone $30 is very expensive for trading. It requires you to gain a capital gains more than $20 and $60 respectively to make any sense. This means for people with small dollar amounts in their positions in equities, such as people with just a couple of thousands, y
It is not just that. It is the overall annual cost of these trades. I never have a problem coming up with a $20 gain in my trades, and my positions are usually for at least 2K or more, otherwise the trade is not even worth bothering with. So it is not the percentage as the cost of the trade that bothers me, it is the total sum you spend on this in a year. I trade probably 10-15 times a month across all my accounts... that means I am spending $120 - $180 / year on trading fees!
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
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coachpotatoarmchairQB wrote: Thats true. Yet we dont have a problem paying $60 for phone $60 for internet per month. Or $30 per meal after tips for the weekends. $20 per movie with popcorn and drink at the cinema. $80 gas. At least if the trading allows you to gain money, you've already won.

That said, certainly it is too much still. Everything is electronic with the trading through ECN. All behind the scenes with computers plugging away. So I'm sure their profit margins are really high with these commissions. For phone commission because you have a human doing the typing and order for you, that can have some premium sure for salary and all, but electronic brokerage should be cheaper.

It really does cut down on your gains. Sometimes if you have $100, after trading fees you only end up with $80 (for $9.99 thats if you qualify). Thats quote a big slice of the cake.
What kind of RFDer still pays $60 for phone and another $60 for internet??? $20 at the movies??? Go on tuesdays ;) $5.50 movies and don't get the popcorn/drink :) .

$80 gas is kinda in ones own prospective depending on how much Liters your tank is :razz: , I know mine takes $85 for a full tank of premium at Costco!
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Ecourn wrote: Good luck, keep us posted if they let you off if you have under 50K. My guess is no because its a big corp with standard rules and regulations trickled down from the upper floors.

$60 commissions round trip of buy sell is too expensive I think. Especially in view of the fact you should be diversifying portfolio. It pretty much guarentees you cant diversify much if you wish to have any sort of gain on your small investment amount.
How much do you have to buy to mitigate the effects of the round trip commission fees?
virtuman1980 wrote: Haha...pretty interesting fellow indeed...but it was this persistence/stubbornness of his that got him the positive result in the end
datako wrote: ... Although, I'm a little surprised you went against what everyone advised ,op. You've got balls and absolutely crazy at the same time to do this.
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SCEES8 wrote: Yeah, $9.99, let alone $30 is very expensive for trading. It requires you to gain a capital gains more than $20 and $60 respectively to make any sense. This means for people with small dollar amounts in their positions in equities, such as people with just a couple of thousands, you are not likely to be making much if any money at all. Or you'd have to wait a long time. Plus you have to really know how to choose them which isnt easy.
What if you have free trading? What would you do? What strategy would make sense if you don't have to pay any trading fees?
virtuman1980 wrote: Haha...pretty interesting fellow indeed...but it was this persistence/stubbornness of his that got him the positive result in the end
datako wrote: ... Although, I'm a little surprised you went against what everyone advised ,op. You've got balls and absolutely crazy at the same time to do this.

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