Learn to Day Trade: FREE Trades? Is your Broker pocketing YOUR ECN Rebate?!

Commission for an active trader is one of the largest overhead costs eating into their % of profits. For a unprofitable traders, it can really accelerate the downward spiral of an account. Like any business its therefore very important to fully understand your overhead costs. To give yourself a full understanding of the commission effect always express the cost of Commission as a % of your Trading profits or losses.

We commonly see profitable traders who are beating the market but their commission is pushing them negative taking up over 100% of their trading profits! The more you trade the more the % magnifies especially when trading small size.

 

If your trading (DMA) Direct Market Access, you are either charged by the ECN Route when taking liquidity or you're paid a rebate when adding liquidity. What you pay or what your paid is depending on the type of liquidity you provide or take. Different routes have different rates some are completely free.

As a rough rule of thumb expect to be paid $2 per 1000 shares traded when adding liquidity and $3 per 1000 shares when taking liquidity.

To ADD liquidity when going LONG you want to be on the BID to get into the position and then when you want to Sell your long you want to be on the ASK. Please note it will be slower to fill as your waiting for someone to take your offers. To remove Liquidity you want to do the opposite but you will be charged and your fill should be instant.   


You might have seen the offer of Commission Free trading at a few discount retail brokers but you’ll notice they don’t offer you your ECN rebate. What they are effectively doing is keeping your ECN rebates when you add liquidity, meaning the broker is pocketing your money!


At TraderEquity we have Ultra Low Commission and offer all our traders full ECN rebates. If your trading by adding liquidity at certain size on certain routes this typically means that your commission costs will be completely covered and leaving money left over! Therefore you are effectively being paid to trade! Saving you thousands to tens of thousands over the course of a year!

Always take the time to work out your overhead costs, we are typically 60-80% cheaper just on commission EXCLUDING your ECN rebates. But when you factor the ECN rebates and the commission reductions over the course of a month or year even with the profit split the savings will be dramatic!


We put a lot of effort in to try and provide you with good quality content. If you like this blog please show your appreciation by liking and share on social media.


Happy Trading!

 

Published 20/05/2019

Please Note: We can NOT accept any US-based traders, this restriction is based on their location rather than their nationality and we can NOT accept any Canadian based traders directly.




 

Live Blog Posts


TraderEquity : What are the advantages?

What is a Proprietary Trading Firm & What are the Benefits?

Prop Firm vs Broker :
Commissions - Don’t Go Broke using a Broker!


Prop Firm vs Broker : You want Fixed Buying Power & Not Leverage


Consistency and Working Smarter, NOT Harder is the Key.

Does your chatroom have a conflict of interest with you?

 

Learn Day Trading: Is your Risk RELATIVE & Why it really matters!

 

Learn Day Trading: Ever heard of the 90 - 90 - 90 Rule?

Learn to Day Trade: FREE Trades? Is your Broker Pocketing YOUR ECN Rebate?!

Mental Health and Day Trading. Are you in the right place?

Learn to Day Trade: The Perfect Balance Trade Accuracy vs Risk-Reward Ratio.

Learn to Day Trade: Are you in the Beginners Cycle?

Learn to Day Trade: Does your Personality Suit YOUR Trading Style?

Retail Traders AVOID! The Ugly Truth about CFDs & Principle Execution Trading Bucket Shops.

Day Trading Lessons - Level 2 Spoofing, MID, Hiding Order Size, Liquidity & More

Day Trader Lifestyle: What do I need to travel the world & Day Trade?

Learn to Day Trade: Do you have YOUR OWN Day Trading Thesis?

Confirmation Bias & Day Trading Process: Constantly Losing? Buying Tops / Selling Bottoms? Fighting? Over Trading?

Day Traders Must Read! The Maths Trap

Dopamine, Discipline and Day Trading

 

Still using Level 2? What is Nasdaq TotalView? Level 3?

Day Trading Basics: Are you Trading with the Bigger Picture?

Behavioural Finance & Day Trading: Taking Profits Too Quickly?


Up Coming Posts

 

Access to Capital to Grow when you Succeed

The Importance of Structured Risk Management


Advantages of Multiple Routes & Dark Pools

 

Yes, Scalping Stocks Is Profitable & Possible with TraderEquity™


Professional Level Trading Software & Detailed Trade Reports

 

Only Pay When I Use the Locates? Our Access to HTB Shorts

 

FREE Mentoring & Education

Zero Conflicts of Interest at TraderEquity™




Questions about a Blog Article ?

Start at our Frequently Asked Questions - Click Here