Another Swifttrade thread

I understand that many on this board will not be happy to see yet another Swifttrade thread. I apologize for having to start one, but there are a series of questions that I cant seem to find the answers to, at least some questions that haven’t been answered, and I’ve looked quite extensively. I would appreciate if someone knowledgeable can answer regarding Swifttrade. No opinions, just questions and factual answers. I wont piss people off by asking them what they think is the best office or what they think of the deal, etc., at least not in this thread.

Some of the questions may seem stupid to some of you, but to those of us who have never stepped inside such an operation, the answers will surely be helpful.

Questions regarding Swifttrade and the Like:

1) Exactly what does it mean to say that this company is a Proprietary Trading company and that they can make money from credit sharing and shave a half a penny here and there to make there money using their software. As I understand it, their software is nothing more than minute charts, live news wires, level II real time quotes for all Exchanges and ECN’s, and order entry screens, among other tools. As someone who has been in the markets for years, you buy at the ask and sell at the bid, trying to time the market for a fraction of a penny here and there is foolish even with level II streaming quotes, live charts and news. What exactly does this company do to enable themselves an advantage over the retail day trader at home trading with say, Ameritrade’s platform and level II streaming real time quotes?

2) What does it mean to credit trade or trading for credits?

3) Assuming that one has obtained a position with the company, what are the terms of the deal? I understand that there is no capital contribution, but here are some side questions:
a) What forms must be signed, in terms of liability by the employee for anything, such as agreeing to pay workstation and software fees, etc.? b) Is the person an employee with benefits or on contract? c) How long is the contract. d) Who can terminate the contract and under what circumstances?

4) Chronologically speaking, can someone explain the training process? Such as, “The first day you meet your mentor and you go through the software and he shows you the functionality. After that they teach you how they make their money and expect you to do the same”, etc….

5) After they show you how everything works and you are about to execute your first trade under their guidelines and expectations, are you actually trading the firms capital?

6) If in fact you are trading the company’s capital, what is the dollar value of the total amount you are allowed to invest at the time of that first trade. For example, if its say 30000K Canadian, that means I can then buy roughly 1000 shares of Microsoft…correct?

7) What am I expected to do in the next instant, either sell it for a profit, almost immediately, or be down a penny and sell for a loss??

8) What are the rates for all of the following:
a) SEC Fees, ECN Fees, etc., and Swift commissions for buying and selling 1000 shares of Microsoft as in the above example?
b) Workstations fees such as quote fees, news wire fees etc., per month

9) What exactly are these rebates that others have eluded to and many have talked about. I hear Golden traders get rebates, what is all this?

10) What is the “trading floor” composed of? What I picture is a bunch of traders, each sitting at cubicles with their computers in front of them, their phone on their right and watching the screen intently for their next trade? Meanwhile, the manager or compliance guy, or whomever, is monitoring everyone’s trading on his or her station and will somehow know when a certain individual is offside at any given moment?

11) At what point does one become allowed to earn money. In other words, does the gross monthly profit have to exceed say $3500.00 after all commissions to earn that 35%. And when exactly does buying power increase. I know people have discussed graduating, but can someone explain more clearly what it takes to graduate and what your buying power will be at that time?

12) Can options be traded as well? In other words, does Swifttrade do anything other than what I have seen talked about? Example, say I wanted to buy a position and hedge it with options? Etc.

13) An interesting question that differs from the rest, and possibly may not be able to be answered here and now:

Say someone has a $250,000 US account and wants to trade his or her money using the Swift trade software and is willing to pay say a set amount of commission per trade, but that person can also invest in whatever he or she desires and trade any way they see fit, since after all it is their money…..does this possibility exist and if not, why?

I appreciate any and all answers to the above. I know they are many, but they will give anyone, including myself, who has any inclination in such a career with this company, the opportunity to make an informed decision. If I come up with anymore, I will be sure to post them.

 

Swifttrade is supposed to be opening a site here in Halifax in a couple of months and since we dont have any daytrading outfits here in Halifax, this opportunity seems worthwhile exploring, hence the above questions.

 

tradernik,

I appreciate your comments, however, a few notes:

1) I have never stepped foot in a prop shop, and made that clear in my first post. I live in Halifax. No prop shops here at all.

2) As it relates to the fundamental lack of trading knowledge.... I mean, for the Love of God, are you actually questioning me on such a thing. That question is derived from the countless hours of research that you suggest I do, as I have read many say that Swifttrade places extremely tight parameters on thier stoplosses and trades are done instantaneously. So averaging down simply isnt an option with them. Thats why I asked the question, and it remains unanswered.

3) As for the trading floor question, as immaturely as it may seem, I just want to get a better idea of what I am looking at, not a pertinent question by any means, but what's the problem, I asked it and people may choose to answer or not....hopefully they will.

4) Lastly, and dont take this the wrong way, but if you didn't have any answers for me, which you didn't, why exaclty did you decide to post your message in the forum, having nothing to do with the questions I posted. Granted the forum might upset you, but by no means was I trying to offend you and I would appreciate it if you could stick to answering the questions if you can. If you want to question my trading knowledge in person, please feel free to send me a PM and Id be happy to discuss it with you, but this forum is certainly not the place for it.

Regards

 

The company doesnt answer all those questions it seems, cause you only ever get to talk to HR people. The traders are always "busy".

I am not upset at all tradernik, but I just dont understand why people assume that all their questions have been answered in previous threads.

Man, do you know how many posts I have read on this site concerning swifttrade and even some about HLV, Golden etc.

I wouldnt waste all that time writing those questions out if I had them answered man. Seriously. And if I offended, I apologize. Feel free to post whatever you like whenever you like. I dont own the site nor do I moderate it. I appreciate the fact that you even responded at all.

 

I deleted my posts - I suggest you do the same to all but the first and second to maintain the continuity of your thread. You have plenty of time - just click edit/delete in the bottom right corner of each post, then click the box marker 'delete' on the editing page and then click on 'delete now'

I have no further comments regarding your post. I am sure that others will comment in the coming hours/days. I responded in a spirit of goodwill. You say you called but they can't tell you what their fees are, or answer any one of the other 7 questions you asked which they could easily answer. I don't believe you. Enough said.

 

Investor--some ETers (including me) may think you didn't do your homework checking Swiftrade website and reading the countless thread on rebating and prop firms trading methodologies.

So if you WANT you can get all the answers you need making no one think you are leazy.

 

I'll take a crack at providing you with some answers.......... Hopefully the answers aren't too hard to read.

 

Best Swift post yet

 

The only thing I would discuss agree with, is that some branches do have live news fee's. Stuff like that really does depend on the individual branch and the owner. The better off branches will purchase this for the traders. Also I do think that some of the branch managers really do care if you get hired on, and want you too. They aren't all like Fu... don't screw up. But, as always, i believe in the end, if you are able to get hired or trade, it is because of your skills and hard work.

Thanks best of luck