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General Discussion / Re: Banana republic
« Last post by Cardboard on Today at 09:15:16 AM »
"For the thousands of Americans murdered every year in the U.S., Obama correctly saw it was too loose gun regulations; Trump thinks it's Muslim terrorists and Mexican rapists and hoodlums. It's American citizens who are doing most of the killings; this is not "fake news""

You are mixing things up. Obama wants gun control like the left. Trump doesn't want it like Republicans and most Libertarians. You have to respect Americans for their own desire. If they want guns and to protect themselves that is their choice. If they want to get rid of it, they would need some kind of referendum. This mentality is not popular in Europe but, it was also the birth place of the worst dictator of all times and so many tyrants throughout history because they had full control.

Terrorism, national security and immigration are whole different topics.

Maybe that Obama was respected in your part of the world but, he certainly wasn't by Iran, Syria, Russia, North Korea and others. They saw him as weak and tried to abuse him at every possible instance.

Cardboard
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General Discussion / Re: Fidelity Cuts Commissions to $4.95
« Last post by racemize on Today at 09:13:49 AM »
Race, you should use variable / tiered pricing at IB... cost is 30-40% less than you are quoting for their "fixed" pricing structure (rough number, on average).

I think execution improvements at IB honestly probably make my commission there zero.

If you do market order, I think the retail guys will do better, because internalizers will execute you more / faster cause they think you are dumb money, but I think with limits (adding liquidity) through IB with tiered commission structure you come out ahead no matter what.

I think for the vast majority of stocks, you can't execute >50-100k trades at a single execution price anyway, so unless you are trading only ultra liquid shares, I think your example(s) aren't really valid because SCHW / Fido would break those orders in two, or you are doing a market order and you have market impacts to measure.

As a side note, just traded (with tiered commission structure) $46k worth of BAC in a single trade yesterday.  Commission was $7.14. (EDIT: and this was a marketable limit order, taking liquidity... )

Ok, it is certainly true that I was using fixed.  And it does appear that tiered is better across the board.  Why is fixed offered at all?  I'll see how much better it gets on future trades.

I would also buy that execution improvements could make the cost worthwhile, but that is hard to measure.

Still though, I've done larger trades on a single price with fidelity.  My fund partner makes trades bigger than our fund in his personal account on etrade, and I'm confident it is better pricing than we are getting at IB, at the fixed cost at least.  E.g., yesterday I sold Leucadia on IB and it cost me $63 dollars, and it occurred in less than a second--I'm sure it would have gone that fast in Fidelity too, for $5 apparently.  It is true that you can't change the price, but they will keep executing at the price for the rest of the day if need be, using the same commission. 
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Investment Ideas / Re: IBKR - Interactive Brokers
« Last post by rb on Today at 09:13:10 AM »
Easy. Some retail investors care about prices, and in some countries the competition isn't like in the US where TD Ameritrade, Schwab and Fidelity are actually already pretty cheap. My parents who don't do more than a handful of trades have an IB account for that reason. At the same time, I do some of my trades at TD Ameritrade because IB is a lot more expensive for certain transactions...
+1. Also the international side at IB and the FX. Savings on one FX trade at IB will pay the minimums for a whole year. Also low margin interest that smart retail investors can integrate into a larger strategy.
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General Discussion / Re: Garth Turner - Real Estate in Canada
« Last post by rb on Today at 09:06:31 AM »
Real estate is a leveraged asset in most cases. Since 1981, the cost of borrowing money in Canada has fallen from the peak. Over the same period of time, many households moved from one income earner in the household to two. So, for 37 years the cost of borrowing money has been falling while household income was increasing. It's not surprising then that leveraged assets like real estate were driven up. Especially in a city like Vancouver where land supply is tight. Mountains in the North, water to the West, a border to the South with protected farmland to the East against the backdrop of more mountains. The building in Vancouver these days is up. Vertically. Assessed values are dominated by land values.

Looking forward, a change in interest rates increasing the cost of borrowing would likely create a shakeout for the overleveraged, but longer term the land will remain a valuable asset.
Don't forget structurally weaker demand and more supply coming in the future as the baby boomers start to die off. Basically all the tail winds that real estate had over the past 30 years are basically turning into headwinds over the next 30.
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Investment Ideas / Re: IBKR - Interactive Brokers
« Last post by Astrea on Today at 09:02:02 AM »
Charles Schwab Corp says it will reduce its standard online equity and ETF trade commissions from $6.95 to $4.95 effective March 3, 2017


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General Discussion / Re: Garth Turner - Real Estate in Canada
« Last post by lessthaniv on Today at 09:00:50 AM »
Real estate is a leveraged asset in most cases. Since 1981, the cost of borrowing money in Canada has fallen from the peak. Over the same period of time, many households moved from one income earner in the household to two. So, for 37 years the cost of borrowing money has been falling while household income was increasing. It's not surprising then that leveraged assets like real estate were driven up. Especially in a city like Vancouver where land supply is tight. Mountains in the North, water to the West, a border to the South with protected farmland to the East against the backdrop of more mountains. The building in Vancouver these days is up. Vertically. Assessed values are dominated by land values.

Looking forward, a change in interest rates increasing the cost of borrowing would likely create a shakeout for the overleveraged, but longer term the land will remain a valuable asset.





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Investment Ideas / Re: IBKR - Interactive Brokers
« Last post by Hielko on Today at 08:58:39 AM »
Easy. Some retail investors care about prices, and in some countries the competition isn't like in the US where TD Ameritrade, Schwab and Fidelity are actually already pretty cheap. My parents who don't do more than a handful of trades have an IB account for that reason. At the same time, I do some of my trades at TD Ameritrade because IB is a lot more expensive for certain transactions...
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General Discussion / Re: Banana republic
« Last post by Hawks on Today at 08:46:02 AM »
But it is not so simple as left leaning versus right leaning media. I'm talking personalities and value systems. For the most part, Obama was respected as a person around the globe, Trump is not. Scapegoats are everywhere for him - Muslims, CNN, NY Times, France, Merkel. For the thousands of Americans murdered every year in the U.S., Obama correctly saw it was too loose gun regulations; Trump thinks it's Muslim terrorists and Mexican rapists and hoodlums. It's American citizens who are doing most of the killings; this is not "fake news"
Grant your point re blaming Bush; more accurately it was Bush and Clinton who weakened the financial regulations then all hell broke loose.
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General Discussion / Re: Garth Turner - Real Estate in Canada
« Last post by RichardGibbons on Today at 08:42:16 AM »
if i rent in Vancouver the rent is $ 2500 for two bedroom
i can pay $700K mortgage with that, an amount of that goes into principal repayment and then i get to participate in future up side - i'm not flipping it tomorrow, but if i want to retire 15 years from now and move to the suburbs, it'll be good , and all that capital gain is tax-free.    why leave money on the table by renting ?     if you look at the history, major cities in Canada, US and many developed countries just tend to worth more over time than the less-developed 

Because rent for a 2 bedroom in Vancouver is less than $2,500, and because the cost of that condo isn't just the interest on the mortgage, but rather includes things like depreciation, insurance, and taxes. What's more, that $2,500 mortgage cost isn't fixed, but rather can increase dramatically with interest rates at the same time as the value of the assets decline. Plus, big, costly things can go wrong.  The risk of owning is far higher than renting, and ignoring those costs is a mistake.

So, if you actually care about the math, the math on renting in Vancouver is far superior to buying right now--I'm grateful that my landlord subsidizes my living expenses by hundreds of dollars a month (my two bedroom is $1,600).
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Investment Ideas / Re: EBAY - Ebay
« Last post by DTEJD1997 on Today at 08:38:20 AM »
Hey all:

Time has progressed and passed by.  With that, Ebay is significantly raising fees and generally making things more difficult for sellers.

Top rated seller discount is decreasing from 20% to 10%.  Further, you now have to make 95% of your shipments within 1 business day, instead of 90%.  This is a SIGNIFICANT raising of fees.

Fees for low rated seller are increasing SIGNIFICANTLY!  If I read it correctly, they are going up 40%?

Ebay is also making changes to the auction format which might make it slightly more difficult to list?

On the plus side, they are getting rid of 3rd party ads/links which they would put on your listings.  They are also giving small credits for targeted advertising.

So two steps forward, and FIVE steps back.

Good thing I've got counter measures for most of their horsesh!t.

My guess is that sellers are not going to take the new changes very well.

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