| Rich,
From my experience, there is no big difference in trading odd lot versus round lots,
as long as it is an actively traded stock. If you are dealing with a thinly traded
stock, you may get bad prices even it is round lot.
As to commission, if you are thinking of transactions involving only tens or hundreds
of dollars, the commission as a % of trade will be high due to fixed cost (usually
around $25 with discount brokers). If you are doing odd lots with expensive stocks,
consider using a broker that charges a fixed amount per share. For example,
I use Stock Cross which charges $25 plus 8.5 cents per share. So if I buy 10 shares
of any stock, it costs the same - $25.85. If the price of sa share is $100, then
the commission is only about 2.5%, quite reasonable for such a small trade.
Hope this helps.
|
| Rich,
From my experience, there is no big difference in trading odd lot
versus round lots, as long as it is an actively traded stock. If you
are dealing with a thinly traded stock, you may get bad prices even it
is round lot.
As to commission, if you are thinking of transactions involving only
tens or hundreds of dollars, the commission as a % of trade will be
high due to fixed cost (usually around $25 with discount brokers). If
you are doing odd lots with expensive stocks, consider using a broker
that charges a fixed amount per share. For example, I use Stock Cross
which charges $25 plus 8.5 cents per share. So if I buy 10 shares of
any stock, it costs the same - $25.85. If the price of sa share is
$100, then the commission is only about 2.5%, quite reasonable for such
a small trade.
Hope this helps.
|