Went with a discount broker to save $50 per trade, but it cost me way more

I chose TradeZero over Interactive Brokers last month because the platform felt easier, but I completely missed that their order routing was slower. I lost out on a fill by 2 cents on a 500 share trade and it ate up all my savings. Anyone else get burned by a cheap broker’s hidden latency?

2 comments

2 Comments

river_adams2511d ago

I get the frustration but you're kinda blaming the wrong thing here. A 2 cent difference on 500 shares is $10 which is way less than the $50 you saved on that single trade. Not to mention the monthly fees and data subscriptions you probably saved on too. TradeZero is designed for active penny stock traders not for someone trying to get best execution on a 500 share order. Interactive Brokers has its own issues like inactive fees and a clunky interface that drives people crazy. Sometimes paying for speed makes sense if you're scalping but for most of us the discount route works just fine if you know what you're signing up for.

cameron31811d ago

2 cent difference on 500 shares is $10" - hold up, you're telling me people actually watch pennies that close? That's some next level focus right there.