One year ago I did a major housekeeping change.
I finally opened an Interactive Brokers account (I still have accounts with TDAmeritrade and OptionsHouse – now ETrade).
I don’t particularly like IB’s web interface or the desktop GUI. But one year in, it bothers me far less than it used to. I love the speed and the quality of execution. My other brokerage accounts, while offering better UIs, force me to bid in increments of 5c, and often take forever to fill comparable orders.
The big factor, of course, is cost. Instead of shelling $5+, most of my options cost me $1 or less. IB often gets me a price better than my limit price. I understand that it could pocket the difference, and I would never know. Actions like these build trust (Costco/Amazon playbook). In 2017, almost 90% of my trades were executed on IB.
It also pays me meaningful interest on my cash balance (0.92% currently for cash balances above $10k). This is higher than the interest at my bank.
As my portfolio moved from 16% cash at the start of 2017 to nearly 35% currently, the interest I earn underwrites all my commissions and then some.