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I'm looking at switching to a discount brokerage. Questrade seems to be a favourite among them, but I've heard they have high ECN fees because they buy shares through another party (Penson Financial i think). Do you use Questrade? Do you pay high fees? Are other discount brokerages like this?
Thanks.
 

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I'm looking at switching to a discount brokerage. Questrade seems to be a favourite among them, but I've heard they have high ECN fees because they buy shares through another party (Penson Financial i think). Do you use Questrade? Do you pay high fees? Are other discount brokerages like this?
Thanks.
Penson financial is their clearing firm and has nothing to do with ECN fee. To avoid ECN fees you can use their managed routing in US (whether passive or aggressive) or to make Jungle comment accurate you will need to put a limit order below the offer (if buying) or above the bid (if selling), essentially being passive.

Also, if you not a heavy trader you should take a look at Virtual Brokers. They are actually cheaper if you buy more than 600 shares/trade. It will cost you 6.49/trade. Questrade is 0.01/share from 4.95 up to 9.99. If you are heavy trader 150+/Quarter then go with TD Bank, no ECN fee and flat 6.99.
 

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I trade ~$1-2k at a time and only up to ~100 shares at a time and the ECN fees are pennies. Now I use limit orders so not even pennies

If you are a day trader or penny stock trader or a millionaire then yea the ECN fees defeat the cheapness of Questrade
 
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