On: Investing Returns on the S&P500

[petrey]

Well for one, it's about disruption and change. The creators are more than familiar with brokerage, and it shouldn't be a shocker that most brokers do not operate trades, it's mostly electronic.[1] If you're going to hold stocks for years, why not skimp on an $8 commission? If you make a purchase of 100 shares of $FB, it could save you at least $800 for that sale.

So the real question is, why not?

[1] https://www.youtube.com/watch?v=JwpQpFqzoAE

[jdmichal → petrey]

> If you make a purchase of 100 shares of $FB, it could save you at least $800 for that sale.

That's not how commissions work. They are per order, not per share.

[inthewoods → jdmichal]

Not completely accurate - while most brokers are per order, you can use a broker such as Interactive Brokers which charge per share (with a minimum).

[jdmichal → inthewoods]

Yes, at $0.005 per share. It's pretty obvious that $8 is going to be a per order commission.

[soVeryTired → petrey]

Most brokers don't charge per share. The good ones charge a fixed fee per trade. So if you trade three times a year you might pay $30.

[kingnothing → petrey]

You don't pay the commission per share, it's per transaction. Buying 100 shares of FB will cost $8, as would buying 10 shares.

[seattle_spring → petrey]

Commissions are per trade, not per share...