Hello, I recently interviewed with a group within one of the larger "more respected" prop firms. (If that means anything.) I liked the group and the group leader. They offered .008 as a commission rate (ie $8 per 1000 shares). The group leader promised this number would come down as I got up on my feet and as my trading volume increases. Does this .008 seem right or is this just too high. Any feedback would be great. Thanks
that's only a small part of the total equation. what is the desk fee? software fee? what leverage do they give you? what is the profit cut?
even if desk and software are free and he get 100 % $8 per 1000 shares its a joke ----------------------------------------------------------------------- YOUR TRADING BLOG http://www.bloggerbull.com
if you pay more than .005 and don't get 100% no desk fee no software fee you're getting ripped off. your manger is at .002 or less.don't get screwed tell him to take it or leave it
I agree- it depends on a lot of other things. Not only those already mentioned, but do you have to put up capital and how much? Most importantly, are they going to train you? Very few places actually do any training anymore. I'm assuming you don't have much experience- if that's the case, I'd gladly pay that rate in exchange for good training and sitting next to experienced, profitable traders. If it's the typical churn shop, then that's a bad deal.
I know good traders who don't mind paying above those rates but they don't trade huge volume. What's disturbing about the offer is the promise they'll bring it down eventually. I bet they also promised 500-1000 a day in no time. What else did they promise you, kid? How about a 1 in 10 chance you won't last 3 weeks.
Thanks for all of the responses. Here is some additional info: Upfront Capital Contribution: $3,000 Quote Fees: $200 per month Additional monthly fees for ECN and SAI? 99% payout Sounds like from the initial responses that this is not a great deal for a new trader. Does it sound possible for a new trader to learn and survive in this initial environment? Does anyone have advice on a firm that they would recommend on either training and or commission/rate structure for a new trader. Thanks
#1 in importance is training. You rates really dont matter one iota in the beginning stages if they are in the ballpark of whats acceptable (obviously anything over a penny a share is too high). But if you are able to hook up with a profitable trader, this can really smooth out the learning curve for you.