Sunday, August 20, 2006

Trading Expenses

Trading expenses form an inescapable reality for a trader. The shorter the time frame that your trades last, the more the importance of expenses. By expenses what I mean is not the car fuel, phone expenses and so on, but the taxes and commissions that are imposed on the trades.

In the US, the environment is conducive for traders who make their living out of this activity alone. The expenses are commissions, SEC and other tax. The total expense for a retail scalper can be as low as .0028 % (all inclusive) compared to .033% for an equivalent trader in India. Far more than 10 times !

From information that I recently got, trading even in Europe cannot be easy either, but the costs are much lower than India. Trading the US markets from London though can be one solution.

Guys in the US have it good !

Infinite

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