Mark Holstius Elite    Posts: 744 Joined: 10/11/2012 Location: Sleepy Hollow, IL  User Profile | Here are 2 snags of what happens as far as commissions being a factor when we do lots of small trades in my Follow The Money portfolio... using the IB commissions. The first is a series of Equity graphs in a $10,000 IRA progressing down in allocation per trade from 5% / trade to 1% / trade. The effect of commissions gets rather dramatic at 2% & 1%. The second is a similar series of Equity graphs in a $5,000 IRA progressing down in allocation per trade from 5% / trade to 2% / trade. The "commissions cliff" occurs at 3% / trade... Sorry, it's just a ratio. Sigh. Notice on the last graph above that the HR is still 79% - but even the relatively low IB commissions are killing it. Hope this helps... Mark [Edited by Mark Holstius on 7/8/2017 11:48 AM]  Attached file : Commissions 10K Account.png (344KB - 757 downloads) Attached file : Commissions 5K Account.png (282KB - 741 downloads) |
