Illiquid stocks

[wknecht]

Yes the concern is that I could get hit with multiple commissions. Fidelity's international rates can make this quite expensive, particularly in a not so concentrated portfolio. Without AON, it seems you need to be more active and "trade" somewhat rather than the set it and forget it approach.

[writser]

I was actually wrong: you do get charged for multiple-day executions. Sorry.

Orders that persist overnight will be considered a new order for the purposes of determining order minimums.

 

I tried to enter AON orders for a couple of different European stocks and it looks like that is not possible. Nevertheless, the daily minimum fee is approximately $5 for most exchanges, so unless you trade some _extremely_ illiquid stuff you should be ok I think.

 

This page explains the commission structure per country: https://www.interactivebrokers.com/en/index.php?f=commission&p=stocks1

 

 

[ItsAValueTrap]

Yes the concern is that I could get hit with multiple commissions. Fidelity's international rates can make this quite expensive, particularly in a not so concentrated portfolio. Without AON, it seems you need to be more active and "trade" somewhat rather than the set it and forget it approach.

 

Your all-in costs might actually be lower if you pay multiple commissions.

[oddballstocks]

Yes the concern is that I could get hit with multiple commissions. Fidelity's international rates can make this quite expensive, particularly in a not so concentrated portfolio. Without AON, it seems you need to be more active and "trade" somewhat rather than the set it and forget it approach.

 

Call Fidelity and talk to a market maker, they'll read you the order book over the phone.  Depending on the liquidity and who's offering what it might be worth paying Fidelity for an over the phone order if they can execute it correctly at once, rather than you playing hunt and peck online.

 

I know Fidelity shows local quotes online, but they also have connections to market makers in the US who hold the stock.  A few years back I purchased a Swiss stock from a US MM.  You need a broker for something like that, on the phone they can help you out, this stuff isn't accessible online.

 

Looks like it's €50 for a phone order or €19 online.  If the phone rep can make it happen in a single trade whereas online it might be more than 2 trades you come out ahead.

 

As others have said if you need a lot of small trades then IB might be the way to go.

[cobafdek]

 

 

I know Fidelity shows local quotes online, but they also have connections to market makers in the US who hold the stock.  A few years back I purchased a Swiss stock from a US MM.  You need a broker for something like that, on the phone they can help you out, this stuff isn't accessible online.

 

 

 

 

Are you then given the foreign depository receipt (the ones with ticker symbols ending in -F), or is it the actual foreign security with the foreign ticker symbol?  Thanks.

[wknecht]

Yes the concern is that I could get hit with multiple commissions. Fidelity's international rates can make this quite expensive, particularly in a not so concentrated portfolio. Without AON, it seems you need to be more active and "trade" somewhat rather than the set it and forget it approach.

 

Your all-in costs might actually be lower if you pay multiple commissions.

If different from the logic you described a few pages up in this thread, I'd be curious to know why. Relatively small position sizes so it wouldn't take many fees for costs to start exceeding ~2% (after 1% FX fees also).

[wknecht]

Yes the concern is that I could get hit with multiple commissions. Fidelity's international rates can make this quite expensive, particularly in a not so concentrated portfolio. Without AON, it seems you need to be more active and "trade" somewhat rather than the set it and forget it approach.

 

Call Fidelity and talk to a market maker, they'll read you the order book over the phone.  Depending on the liquidity and who's offering what it might be worth paying Fidelity for an over the phone order if they can execute it correctly at once, rather than you playing hunt and peck online.

 

I know Fidelity shows local quotes online, but they also have connections to market makers in the US who hold the stock.  A few years back I purchased a Swiss stock from a US MM.  You need a broker for something like that, on the phone they can help you out, this stuff isn't accessible online.

 

Looks like it's €50 for a phone order or €19 online.  If the phone rep can make it happen in a single trade whereas online it might be more than 2 trades you come out ahead.

 

As others have said if you need a lot of small trades then IB might be the way to go.

Thanks for the info. Does going the market makers route in the US change the FX fee by chance? Or an "implied" FX fee of sorts if they're quoting the price in USD?

[ItsAValueTrap]

Yes the concern is that I could get hit with multiple commissions. Fidelity's international rates can make this quite expensive, particularly in a not so concentrated portfolio. Without AON, it seems you need to be more active and "trade" somewhat rather than the set it and forget it approach.

 

Your all-in costs might actually be lower if you pay multiple commissions.

If different from the logic you described a few pages up in this thread, I'd be curious to know why. Relatively small position sizes so it wouldn't take many fees for costs to start exceeding ~2% (after 1% FX fees also).

 

It's the same logic.  You have to guess how much money you may or may not lose on the order execution versus commissions.