Day Trading Costs

[dietcoke999]

Yesterday I traded the weeds APHA, CRON, CGC, luckly it went well but I paid £625 in fees, mainly due to the low dollar value of APHA and CRON.

How do other people deal with trading low dollar stocks as the cost of the fees mean if you get it wrong you've had it.

Or is it just a simple you can't day trade them as the fees make it prohibitive, and just stick to large dollar value stocks only and miss out on the rest?

 

[Caseynotes]

26 minutes ago, dietcoke999 said:

Yesterday I traded the weeds APHA, CRON, CGC, luckly it went well but I paid £625 in fees, mainly due to the low dollar value of APHA and CRON.

How do other people deal with trading low dollar stocks as the cost of the fees mean if you get it wrong you've had it.

Or is it just a simple you can't day trade them as the fees make it prohibitive, and just stick to large dollar value stocks only and miss out on the rest?

 

The alternative is to pay the higher spread for a Forwards contract but avoid the overnight fees, see pic below. 

[dietcoke999]

So for Day Trading this is still no cheaper then, for £50k of APHA its ((549/545) - 1) * £50k = £367

When TradeStation US charges $10 for the same trade its seems using IG for these stocks only makes sense if your Swing Trading.

Edited January 14, 2020 by dietcoke999

[Guest phil]

Good afternoon

are you not looking at the total spread including the underlying if you were to go to the exchange directly, rather than just the spread bet spread. Assuming £50k worth on a $5 stock you're on £100 a point. I can see APHA has a point underlying anyway, then a point either side on the DFB. So trading a £50k size (which is very big lets not forget! - thats 130,000 shares if you were to buy on the exchange) should only have been £100 cost. 

130,000 shares on most brokers directly (not leverage - trading on the NYSE or whatever) is at 2c a share. So $2600 to get in and then out of that stock - $5200 total round trip. 

Right? or have i got my maths really off

best
phil