Commissions on stock trades
I'd like to hear some of the commission rates everyone charges. I'm thinking about charging a flat rate plus commission on the buy side and the same on the sale side only if there is a profit. If it's unprofitable only a flat rate.
I don’t know the specific rule to reference but I don’t think a rate tied to profitability is compliant. You could do a % of the position value which would by nature decrease or increase with the profitability of the transaction, subject to a minimum requirement. I’ve seen a commission schedule at a former BD that was always a percent of trade value (varied depending on type of security) or at least $45 to buy. Selling was always free.
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