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| drew21 |
 Posted: Wed Feb 22, 2006 10:17 am Post subject: Comissions on large orders |
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Investing Associate
Joined: 14 Feb 2006
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| I have a question about large orders from online companies such as scottrade. Say I wish to purchase 1000 shares of a company for $20 a share. I know it would be all but imposible to find somebody who was selling exactly 1000 shares to match my order. So if they find say 2 300 orders, a 50 share, 150 share, and 200 share order instead. Would I be charged 5 different comissions, or just a flat $7 fee since it was all one order? I hope this makes sense, if not just ask and I can try to clarify it further. Thanks for the help. |
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| efflandt |
| Posted: Wed Feb 22, 2006 4:07 pm Post subject: |
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Investing Manager
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Not sure how Scottrade does it (they should explain it somewhere). But at Fidelity any part(s) of an order filled in a single day is a single trade fee. For example, I placed a limit day order to buy 200 shares, and the trade fee was applied to 1st 100 share block, but not the 2nd 100 shares to fill that day.
If you have a GTC (good until cancelled) order that is NOT filled in a single day, there may be a trade fee for each day that a portion of it is filled. So you should be prepared for that possibilty if buying a large block in a retirement account with a limited amount of cash. |
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| Dave Rathbun |
| Posted: Wed Feb 22, 2006 4:42 pm Post subject: |
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CFO
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That's why you have "fill or kill" or "all or none" options. It says you want to have the complete order filled, or have it killed. But as stated, when a large purchase has to be placed in several smaller orders, every broker I have used charges one net commission.
Be aware that there is generally some fine print... if you purchase more than <some limit here> of shares the commission rate goes up. The limit probably varies from broker to broker. |
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| goldguy2 |
| Posted: Wed Mar 01, 2006 7:06 am Post subject: Commissions on large orders. |
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Investing Sr. Associate
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| Maybe I've been lucky, but I can't remember being charged more than one commission on a trade broken up into two or more blocks. That applies to a live broker or online. Usually I use day orders and specify All or None. Also, I'm seldom in the market for 5,000 or 10,000 shares. The bulk of my orders are 1,000 or less. |
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