Avoiding ECN Fees

[arc]

I used to use Questrade and I heard that you get an additional ECN charge for market orders, is this the same for other brokerages (I am now using CIBC)?

Could I use a limit order to avoid paying those fees? or are there different fees associated wtih limit orders?

thanks

[mrPPincer]

I use limit orders to avoid ECN fees with TDW.
Just make sure your bid is below the latest ask price if you're buying, or that your ask price is above the latest bid if you're selling, that way you aren't removing liquidity from the market.

[bettrave]

Today, I asked a higher price and I still got the ECN fees...

[gibor]

I use limit orders to avoid ECN fees with TDW.
Just make sure your bid is below the latest ask price if you're buying, or that your ask price is above the latest bid if you're selling, that way you aren't removing liquidity from the market.

Are you sure you pay ECN fees when buiyng at market price? I never got it....

[Toronto.gal]

Today, I asked a higher price and I still got the ECN fees...

You said in the other thread, that you bought at market price. Are you sure you did not do the same when you sold at $5.39 and $5.42?

[liquidfinance]

You said in the other thread, that you bought at market price. Are you sure you did not do the same when you sold at $5.39 and $5.42?

Questrade only charges ECN for buying not for selling.

http://www.questrade.com/pricing/exchange_ecn_fees.aspx

[Toronto.gal]

Questrade only charges ECN for buying not for selling.

http://www.questrade.com/pricing/exchange_ecn_fees.aspx

I'm not with Questrade, so I didn't know. They do things differently, like for example, they charge hundreds for a certificate vs the $50 that other brokers charge.

At any rate, he said he bought at market price.

[Robillard]

I haven't used Questrade's platform, but I used to daytrade. Generally ECN fees are charged for "removing liquidity". Conversely the ECNs pay credits to traders that "add liquidity". This may not be the case with Questrade, which may be pocketing the liquidity credits attributable to clients though.

In order to add liquidity rather than removing it, you need to place limit bids at or below the current bid price, or limit offers at or above the current offer price. Of course, there is no guarantee that you will actually get a filled trade out of it. You need to be patient.

[bettrave]

You said in the other thread, that you bought at market price. Are you sure you did not do the same when you sold at $5.39 and $5.42?

That's for a sale.
I placed an options to sell 450 shares at 5.42.
It was executed on 2 different transations, 50 shares (this one below) then the 400 shares left.

HGU.TO (TSX)
5.31 +0.13 2.5097% Currency in CAD
Vol1.2547M
Ask sz10.00
Bid sz8.00
Ask5.32
Bid5.31
ActionSell
Order ID7070091
Fill qty50
ECN Fees0.18
Fill price5.42
SEC Fee0.00
Total value271.00
Time placed21-02-2013