Nanex ~ 19-Nov-2013 ~ High Frequency Poppycock
A sure fire way of knowing when someone is either making up stories, or just graduated
from school, is if they
make the claim that High Frequency Trading is what lowered trading commissions
to $10. Anyone who has been around the markets over the last 15 years will remember
that online trading commissions dropped below $10 in the mid to late 1990's. Thanks
to the internet wayback machine,
we can prove it: the image below captures how Ameritrade's website appeared
on Wednesday February 11, 1998. Note the advertisement for $8 trading commissions.
High Frequency Trading didn't appear for another decade,
according to Google trends. Read more common myths about High Frequency Trading
and how it harms the average investor.
If people are going to
tell tall tales on national news networks - tales which can be
easily debunked as we've done here, what about tales involving data that isn't readily