Trading Costs.com

FAQ

What are trading costs?

• Commissions
• Spread
• Market Impact
• Opportunity Costs
• Taxes
• Fees
• Tax Costs
• Timing Costs

Why measure trading costs?

• By measuring trading costs you've taken the first step in improving your clients return and in theory are able to attract more clients

How do you measure Trading Costs?

Trading costs can be measured based on a number of methodologies, the most popular one being measurement against the VWAP. Most trading costs are measured against some benchmark.

What companies measure Trading Costs?

• Plexus
• Able Noser
• ITG
• Instinet

Should I use VWAP price to measure my costs?

What other methodologies are there to measure trading costs?

What are basis points?

How does a trading strategy affect transaction costs?

How does stock price affect transaction cost?

What is Best Execution?

What markets have the Best trading costs and which the worst?

What's the difference between Pre-trade and Post-Trade costs?

Pretrade costs are an estimate of your trading costs before the trade is made.