How to Survive on SureTrader
by Kevin Wan
SureTrader has a lot of fees, some are negligible and some aren't. It's important we know which ones are the most important to avoid and how. I'll start by listing each type of fee and what we can do about them. Some fees are required, others are avoidable.
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Regular Rate - $4.95 Per Order
This is for up to 1000 shares unless you send a personal request to raise the limit to 10,000 shares for $4.95. Keep in mind that using all or none orders is crucial in keeping your fee $4.95 each way. Failure to do so will result in multiple ticketed trades.
Per Share Trade Rate - $0.003 or $0.001 for Regular or OTC/BB Respectively
Trade fee 1 - $0.0000256 of the total dollar amount of securities sold
Trade fee 2 - $0.000119 per share of securities sold (FINRA TAF Fee)
Trade fee 3 is a fee 0.001 – 0.004 per share.
With this and the "per share trade rate" you'll be charged an amount of up to almost 1 cent a share, making it more expensive and less worth it trade stocks under 75 cents. This fee is assessed for all execution for the firm smart router and is added to any total commissions charged.
Overnight short Fee - 1% each night
Very rarely should you find yourself looking to short overnight. But with penny stocks, this can be a very profitable strategy. Don't short overnight unless you're confident in a 5-10% or more drop in the morning or 30-40% over multiple days.
Margin or Equity Call fee -$55
Stay within the 6-1 Leverage Rules I've outlined below.
Trading non-DTC eligible securities will incur additional settlement fees.
99.9% of the time we won't be trading these kinds of stocks. Rarely does a trader find himself attempting to trade a non-DTCC eligible security.
Overnight margin call fee is charged to any account with equity below 50%. -$55
Avoiding this? Simple. Only hold with 2:1 or less on leverage overnight. .
6-1 Leverage Margin Guide
- Must have $500+ in your account to utilize
- Utilize leverage only on Nasdaq, NYSE, and AMEX stocks $3.00 and above
- Stay within 2:1 leverage by 3:30 PM
- Stocks below $2.50 still count as $2.50/share equity. So keep this in mind when calculating how much you actually have
- The Overnight Margin Cost = .2% Night
- Shorting on Margin Overnight is 1%
- Never exceed 6-1 on a short, you'll get margin called and incur a $55 fee
Tips Going Short with SureTrader
Tips Going Long with SureTrader
- You can daytrade with less than 25K stocks $0.75 + in the Nasdaq, NYSE, or AMEX
- (Be familiar with regularly traded stocks so you're prepared with this knowledge in mind
- Make sure you make good trades and look for bigger picture plays to compensate for trades. Scalping is not a good option for smaller accounts
- Only Stocks $0.75 - $5.00
- Don't short overnight unless you're confident in a 5-10% or more drop in the morning
- Great for shorting pumps. SureTrader has shares for a lot of these small caps, giving smaller accounts the ability to take advantage of a separate, lucrative trading style
- Short OTC's $0.75+ without using more than your account equity
Are the Software Fees worth it for SureTrader?
Some students have asked me to include my opinion on the Sure Trader software and whether or not they should invest $50 per month into it.
I recommend any account over $3,000 to invest in it simply because of the hotkey execution which will greatly increase the execution potential of your trades. The $49/month also includes the Sure Trader mobile app which would be $25/month by itself. If you’re a mobile only trader then I recommend getting the app for $25/month and level 2 data for $15/month, still bringing you to only $40/month, and allowing you to short on the go. Smaller accounts will need to play it safe and smart, using other charting tools along with the active web, which I’ve done before – execution time is still decent, and I get great fills.
To me the hot key execution is key in becoming a great trader as it allows you to treat trading like a GAME. In any game, you want an advantage on your opponents in executing moves. Having hot keys allows you to get in and out of trades in a fraction of the time it would take someone with a normal broker.