Discussion in 'Prop Firms' started by Turlo, Mar 19, 2002.
I heard that andover is charging .005 cents per share now. Does anyone know if this rumor is true?
Why not just call the firm?
They must be losing a lot of customer accounts for them to discount their commisions further. Just be careful they are in business for the long run. As a disclaimer, i know nothing about them.
Just a note. Remember Value Jet airlines. Another great deal. There are no free rides on Wall street.
Lieber & Weissman Sec.,L.L.C.
Remember It?!?!? I was long it when the crash occurred. A rude introduction for a newbie trader. That's one of the primary reasons that I prefer to be a DAYtrader.
Well put. That's a very "Bright" statement. We don't play the rate game, If traders want to go to get .005 per share, let them go. No names mentioned . It cost money to maintain infrastructure, buy new computers , run offices etc. If you are a real trader with us, you get low rates and well maintained tradestations(three years old or less) .
Lieber & Weissman Sec., L.L.C.
A good firm deserves a premium to a certain extent. However, last year alone I would have made 100k more with those commission rates. In a slow market like this commissions mean a lot.
I asked the question because I am skeptical. I understand how a firm that clears their own trades, like Wordco can have such low commissions but Andover clears through SLK like many others including my firm (that will remain unmentioned).
Actually quite the opposite can be true (the "self clearing" dilemma).
When you self - clear, you have a very high "hard cost" of doing business, since you have to have a great number of people and systems in place no matter how many shares per day your firm executes. When you don't have that constant "burden" you can simply "gear up" when you add traders and/or volume.
This "high overhead" is often the exact reason for desperate "fee cutting" and other tactics. I am not pointing to any one firm,....it's just that we have addressed the idea of "self clearing" for many years, and it is just not cost efficient. We can keep the firm strong, and keep the prices low by growing our firm and keeping the traders profitable (with lower costs).
Just points to consider.
BTW, I do agree with the fact that you may have paid $100K too much in fees, and that you should compare the viable firms in costs at all times.
Separate names with a comma.