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I’ve been running an algo in paper trading (on Interactive Brokers) that I would like to switch over to live. It makes anywhere between 20-40 trades a day, which racks up a lot of commissions. Any suggestions about how to lower the commissions? FWIW, I trade just one Nasdaq stock.

Thank you!

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    $\begingroup$ I’m voting to close this question because it appears to be much more appropriate for "Personal Finance & Money Stack Exchange" Pls do not forget to delete the one here if you post your question to that site as well. $\endgroup$
    – Alper
    Sep 1, 2022 at 8:21
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    $\begingroup$ Take a look at the different fee schedules of all the available venues you can route to. Some can be pretty advantageous. Quite a bit of software development would be needed to optimize for lower fees, all while considering whether or not routing to minimize fees causes you to incur sub-optimal execution prices. I think IB already has this functionality built-in to some degree. $\endgroup$
    – amdopt
    Sep 1, 2022 at 11:03
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    $\begingroup$ I would say that a question about algorithmic trading is appropriate to this site. $\endgroup$ Sep 1, 2022 at 11:53

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Assuming you are a individual trader, there are a variety of commission-free brokers with APIs, including Alpaca, Tradier, E*Trade, Ally Invest, and TD Ameritrade, among others. These brokers send your orders to large market makers like Citadel and Virtu in exchange for small rebates called Payment for Order Flow (PFOF). In general, these brokers don't have as many order types as Interactive Brokers, which has the most mature API available to individual traders. But that might not matter for your use case.

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  • $\begingroup$ Thank you very much! $\endgroup$
    – R M
    Sep 1, 2022 at 15:28

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