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Brokerage Fees: What You Need to Know - YouTube
Channel: Timothy Sykes
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- So, right now we're gonna talk about
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brokers and brokerage fees.
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A lot of you guys asked me questions.
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I want to answer you.
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(upbeat music)
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Today we're gonna talk about brokers.
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If you have a broker statement
and brokerage account,
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leave a comment underneath,
just say yes or no.
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I'm just curious to see how many people
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actually have brokers
and brokerage accounts
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and look at their brokerage statements.
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It's important to have
all of those, by the way.
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If you say no, it's fine, you know,
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you can still get better.
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This whole game is about
trying to get better over time.
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So, for me, I use two basic brokers,
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E-Trade and Interactive Brokers.
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They don't pay me anything.
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Some people think, "Oh,
you're sponsored by them."
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I'm not, brokers actually don't like me
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because I tell people not to trade as much
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as they want to and
that patience is better.
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Most of the time the best
trade is no trade at all,
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so brokers aren't exactly coming
to me, banging on my door.
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For me, my job and my duty is to you,
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to provide you with the
best and most honest,
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and most useful, information.
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So, I use those two brokers,
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not because either of them are great,
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just because they suck the least.
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I've had a lot of brokers over time,
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a lot of really sucky brokers,
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I'm not even gonna mention them,
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but the brokers that suck the least,
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in my opinion, E-Trade
and Interactive Brokers.
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Interactive Brokers is better
for international students.
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E-Trade I think is better for US students.
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Talk to them both, don't
ask me brokerage questions.
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If you want to open an
account with them, call them.
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Make them earn, you know,
your account and your money.
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But a lot of you guys asked
me about brokerage fees.
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Like, "What about Robinhood,
Robinhood charges no fees."
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Robinhood might not charge commissions,
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but from what I've heard
they have terrible,
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terrible executions and lack of services.
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So, you're saving five
or ten dollars on fees
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and you're losing 100
dollars, 200 dollars,
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500 dollars on some poor
execution or mistrade.
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You have to think, okay?
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This is why I wanted to do this video.
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All these little fees, like
oh, three dollars here,
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five dollars here, seven dollars
here, they're negligible,
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and I'm not coming to you just
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as the rich guy that I am today.
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I'm coming to you from somebody
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with 20-plus years of experience,
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and somebody who did
not start off very rich.
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Those fees that everyone
likes to whine about,
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and that Robinhood has built, like,
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this multi-billion-dollar business on,
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because they make people think
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that they're saving all these fees,
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it's not gonna make you rich.
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You cannot get rich
clipping coupons, okay?
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This is a whole clip-on, coupon,
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clip-on, whatever you want
to call it, mentality.
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So many people don't like the idea
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of brokers making any money off them.
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For me, I want to pay
my broker for good fees,
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just like I pay the US
government in taxes.
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If I'm paying a lot in taxes
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it means that I'm making a lot of income.
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If I'm paying my brokerage
fees for commissions,
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that means that I'm trading,
ideally I'm not overtrading.
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I do think that you can overtrade,
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and I think that you have
to be careful with that,
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especially with low-price stocks.
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But if you're trading good set ups,
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if you're making money
trading and you're spending
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one, two, three percent
on fees, that's fine.
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I know you want 100% of
the pie, but trust me,
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clipping coupons is not
gonna make you rich, okay?
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Saving money on these little fees
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here or there, it doesn't matter.
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You just need to look
at this game as a whole.
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What broker can actually
give you a lot of tools,
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a lot of customer support if
you're in a trade or whatever.
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E-Trade and Interactive Brokers
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are both multi-billion-dollar companies.
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They're both pretty sturdy.
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If one of these companies,
or both of these companies,
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ever went down the whole
system is going down,
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so for me, I don't want to
trust any small startup.
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I don't want to trust an offshore broker.
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I don't want to trust these prop firms.
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If they collapse you basically
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probably have signed your life away
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in the operating
agreement that you signed,
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which is like 40 or 50 pages long,
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which you don't even know about.
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For me, I want to focus on the game.
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Brokers are necessary
to put me in the game.
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I need to be able to trade these stocks.
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So, if I'm using a specialized broker
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where they have specialized
fees, I don't care.
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I want to make my money and I want to grow
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my money and I want to
become a millionaire
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playing the game,
trading the best set ups.
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Cutting losses, rule number one,
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quickly when this trade
does not go my way.
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Everything outside of
the game is negligible,
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it's irrelevant.
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I get so many messages: "Oh, how do I
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"save a little here or there?
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"Oh, you don't understand
me because you're rich.
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"I'm poor, every dollar matters."
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Every dollar does matter,
but if you actually
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want to be rich you need
to change your mentality.
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I have to change your mentality.
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I have to de-brainwash you
from thinking that making
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5% or 10%, even a little
extra money, is good.
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It's not, I would rather you make no money
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and learn some strategy that can make you
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exponentially richer in
two, three, five years.
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I know that's a tough lesson.
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Some people are like, "Well,
I don't want to be rich.
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"I just want to make an extra $500,
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"so why don't I watch CNBC right now?"
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Trust me, okay, if you want to actually
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utilize the stock market
to improve your life
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and your family's life
the way that I've done,
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and now several of my
millionaire students have done,
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play the game the right way.
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Don't focus on making a few percent.
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Don't focus on these little fees.
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Focus on how do you grow
your account exponentially,
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all the other stuff is irrelevant.
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Keep the fees minimal, obviously.
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If the fees are too much,
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call the brokerage and complain to them.
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But for me, I use the
two least sucky brokers,
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two of them, E-Trade
and Interactive Brokers,
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and I don't sweat the small stuff.
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I focus on the bigger game.
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Hey, Tim Sykes, millionaire
mentor and trader.
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Thank you for watching my videos.
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I hope that they help you.
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I want to share everything that
I've learned over the years.
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You can check out more
videos right over there,
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and also click Subscribe
so that you can watch
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all of these videos, get that knowledge,
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and become my next millionaire student.
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