Any prop firms willing/able to compete?

Discussion in 'Prop Firms' started by coon, Apr 22, 2004.

  1. Ebo


    I have not traded "Prop" in a few years.
    What is typical leverage.
    If I put 100K in an LLC, I would expect 1MM in BP or more!
    Many shops give you much higher intra-day and frown on too many overnights, from my understanding.
    #11     Apr 23, 2004
  2. How much do you get from rebates?

    How do you get rebates?
    #12     Apr 23, 2004
  3. you are joking right?
    #13     Apr 23, 2004
  4. You are funny. Echo gives one of the most competitive rates in the industry. A prop firm may give something somewhat competitive to what genesis is giving but maybe slightly higher, but in return alot of the pro firms give better leverage than 10:1. Its uncommon to get leverage from 25:1 to 50:1 or more. Also for me, software is really important. You must weigh out all the pros and cons.
    #14     Apr 23, 2004
  5. I am glad that Genesis is finally coming out to the market. I know that firm very well and it also receives my 100% endorsement - just as several other gave in other posts.

    This is what I wanted to bring to your attention.

    I would NOT be comfortable with a firm that gives large leverage. Experienced traders do not want a firm that does that - why - because then the other, less experience (and possibly suicidal) people get large leverage, trade irresponsibly and can blow up the whole account - which will include my money.

    Yes leverage is important - but large leverage, IMO is a big turn off !! I would advise people to stay away from firms that give crazy leverage.

    With many pesky things that I don't like about Bright Trading - they are smart - they will not blow up. I know they are careful with their buying power - and that is why they have been in business so long. Now that stand is threatened with much better commissions and better platform - but that's competition - not bad management.

    And it doesn't matter how much money the firm has. Give it enough time and it can blow up. Even on a market neutral strategy (many large several-billion dollar funds blew up that way).

    All I am saying is that be careful with firms giving out big leverage.

    Now, it terms of competing, Genesis did a very smart thing (IMO).

    If established firms want to compete with them - they will need to make the rates known. Therefore, all of their current traders (who pay A LOT) will have to get the better rates too. And then they lose revenue on their current traders.
    The non-established firms who don't have this problem are not self - clearing and don't have their own software - thus CAN't compete.
    Interesting stuff.

    Take care guys, and good luck!
    #15     Apr 23, 2004
  6. axehawk


    Echo is not more expensive than Bright @ 1 cent. Echo's posted rate is 0.005. I'm sure if you do any kind of size you could get lower than that.
    #16     Apr 23, 2004
  7. what is their capital req for black box traders? i know schonfeld requires $100k. lot of exposure, is that also a turn off?
    #17     Apr 23, 2004
  8. or any of the other prop firms could offer

    the whole sprectrum of futures markets with low commissions

    like IB ... then I would be impressed :p
    #18     Apr 23, 2004
  9. xbrxx


    The rate genisys is offering is hot for certain people. Like those starting off churning 100 share lots, then this is pretty low. No firm.. Hold, Bright, Echo, Assent would ever offer .0035 to some newbie. More like .008 or .009. So this is pretty damn low for the newbie. But if your doing 40k+ a day, you can get a rate better than Genisys.

    #19     Apr 23, 2004
  10. One question I have to ask is how stable is their platform. Their fees are low but I wouldn't want the system to be down often while I'm trading. Their platform seems to be better suited for nasdaq traders. I trade listed stocks and I would like to have a time and sales like AT Financial.
    #20     Apr 23, 2004