Before two years I speculated on the czech stock market with the BAATELEC (czech telecomunication operator) ticket.

After a several months I discovered, that the commissions (transaction fee of the broker) and spreads (difference between sell and buy price, which going offen to the broker too, if he is the market-maker) on the czech RMS and KOBOS market are so big, that the short-term speculations aka intraday trading are almost impossible.

Spreads:

For example spreads right now for the BAACEZ (It’s the most traded stock in the czech market) are:

KOBOS (aka BCPP) market:

• for a few shares: 936,30/937,00 (sell/buy [CZK]) = spread 0,08%
• for a 200 shares: 935,50/937,00 (sell/buy [CZK]) = spread 0,16%

RMS market:

• for a few shares: 937,00/938,00 (sell/buy [CZK]) = spread 0,11%
• for a 200 shares: 936/938,50 (sell/buy [CZK]) = spread 0,27%

Commissions:

• for KOBOS marketis 2*0,4% (one sell, one buy) = 0,8%
• for RMS market is 2*0,29% (one sell, one buy) = 0,58%

Conclusion

When you count up commission and spread together you will get total fee of 0,7 – 1 % per trade!!! This is absolutely disgusting. Imagine common intraday trader, who making a four drades per day,  he will lose EACH DAY 2,8 – 4 % of his traded capital! After a one month is this traded on the zero!

So I decided, that my home stock market is absolutely no friendly for intraday trading start looking for the other market, and together start investing (based on the fundamental analysis) on same market (but this is a different story).