actually negotiating lower commissions with a broker - has anyone done it successfully
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been with my current ecn broker for 14 months, averaging about 200 lots volume per month. commission is standard $7 per lot round trip. curious if there's a real path to negotiating this down or whether brokers just flatly say no to retail clients.
i've heard of volume rebates but never seen a clear explanation of how to actually approach the conversation with a broker.
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yes, it works. the key is having a credible alternative. approach the broker with your volume history (monthly statement is fine) and a competing offer from another broker in writing. something like: i'm doing 200 lots monthly at 7 per lot, competitor has offered me 5.50, i'd like to stay if you can match it. most brokers will counter at 6 if not 5.50. the threat of leaving is real leverage.
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the volume rebate structure exists at most ecn brokers even if it's not publicly listed. you usually need to ask your account manager directly rather than going through support. at 200 lots per month you're exactly in the range where it starts to matter to them. the internal threshold at many brokers for voluntary commission reduction is around 150-200 lots monthly.
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things that help the negotiation: consistent volume over multiple months (not a one-month spike), profitable account (brokers don't want to lose you to a competitor), and making the request in writing to your account manager rather than support chat. a formal email with your volume data attached gets taken seriously, a support chat request gets a standard no.
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both structures exist depending on the broker. some adjust the rate on the account directly. others run a monthly rebate where you pay standard and receive a cash rebate credit. the rebate model is more common because it's administratively simpler for the broker and lets them adjust thresholds if your volume drops. for your purposes both are equivalent financially.
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got mine from $7 to $5 over about 3 conversations across 6 months. first ask got a flat no, second ask with a competitor quote got me to $6, third ask after another 3 months of consistent volume got to $5. patience matters. they watch if you actually leave after saying you might.
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