Some interesting posts on commission structures have been posted here. High frequency algo model will assume rates of .001 +- or your not even in the ballpark so Don is incorrect on the low standard. That sain business isnât profitable why do it. B of A offer is so restrictive its not applicable to pros thus should even enter discussion + where do you think they are making $. Nothing is free and the route in not DMA as the desk is seeing the flow and trading against, my view only. In any case new to the form and enjoy the dialogue. Bu the way I am with Carlin Financial.
Excellent, welcome to the board...perhaps you can shed some light on what is going on with Generic/Carlin. We've had quite a few traders come over and tell me that they were told that Ron was basically getting out of the prop business (in many states, including ours)...and focusing on the Institutional side. I havent' commented on much of that because all I've heard is from Generic traders, nothing "official". Just curious overall. I agree with you about BAC, it's too bad, we were hoping to have a few million more retail traders trading against us in the near future, LOL. Don
Are these rates out of line or is it fair?: I trade nyse stocks. I am paying .005 base and .005 for arca whether I add liquidity or not. That means, even if I provide liquidity, I am charged .005 for using arca. I do 50,000 shares a day and probably half my trades are thru arca. Also keep in mind, that when i go thru arca, i not only pay .005 for arca, but i also pay the base which is an additional .005 equating to .01 for arca trades!! I just wanna know if this is fair because I am getting smothered in commissions and losing faith in my future in this business. Thanks
No, it is not a competitive rate at 50,000 a day. All you gotta do is call and ask around to see what you will get on your volume. Either that or learn to trade longer swings intraday on 10k - 20k shares a day. Which firm are you at and are you under a sub-LLC?
Hi dogballoon, I am a series 7/55 holder and I have been trading for a couple of months now. I don't want to say what firm I am with right now because I respect the firm for hiring me as an employee and giving me buying power and office space to trade from. But what bothers me is that if I am making consistent money on 4 out of 5 days, I have to get at least 50% of it in my wallet, otherwise this is useless. Oh, and I also have to share 50% of the net profits. I just feel tortured... P.S. What do you think is the rate I should ask for? Thanks pal
Trust me dude, anyone would give you space and buying power. Lower costs if you go remote, also. I think I know your firm already, since I keep seeing people with sucker deals all coming from the same firm. Used to be sorta the thing under subs clearing through Andover years ago, but now it seems to be one particular firm. They seem to shark for guys with no experience and raise them up without knowing anything about the industry (let me guess, you got started with a 2 year non-compete, right? And you probably work somewhere in NJ). Call any of the firms I mentioned, tell them your volume, and see what they offer you. Be wary of any sub-LLC guys PMing you with better rates from unknown groups/firms (you might get a few after this post -- always happens). Just see what the market is like for 1 mil shares a day. If you're net profitable 80% of the time on 50k shares, you'll likely get .0035 base at most, .003 to take liquidity on certain ECNs, 0 to add or a rebate to add, 100% payout. Use that info in whatever way you want -- renegotiate or move. Firm loyalty doesn't mean squat in the prop business. This isn't like going into the work force out of college, where companies actually have an interest in building a labor force. If these "hiring" type of firms discover they can trap you or fool you into working for free for years, they will. Trading is hard enough as it is on a fair deal, so you'd better get working and start taking responsibility.
Thanks a lot, I appreciate you for taking the time at this time of the night to answer my question. Yea, a 2 year non compete ...so I am locked in anyway. If I leave now, I have to wait for the non-compete to expire before I trade anywhere else, then I'd lose the touch for trading and I don't want that to happen especially when I am doing so well gross wise.. Also, my loss limit is so low that there is no way I can hold onto trades to capture bigger moves...I am forced to scalp. Thanks again
How'd I guess. I just saw some poor guy who just signed on with them too for .01225 per share, 45% payout, and even a ridiculous $7 ticket charge for every 1000 shares traded, locked in for 2 years (assuming he believes that non-compete will ever be enforceable). He'll never trade again after he digs his hole, that's for sure. I never knew the firm was like that until recently. But wait a second, you said you've been trading for 5 years. How are you stuck in a 2 year non-compete? At any rate, you'd better start asking other traders to see what else you can do, or you'll be out of the business soon.
No, I have not been trading for 5 years. That was the guy who started this thread. I am a different guy. I agree, I have to take a stand soon. Because its already hard enough that I have to struggle with the market all day and then when its all done, I look at the statements and it says I made 500 but 300 are fees ...I wish they had a crying emoticon here...
Wow, they are robbing you outright on the arca fees. Half a cent to add liquidity? You know they are making a .002 rebate on those trades? So they make .007 when you route arca, while other traders are lowering their costs to close to zero with a competitive rate and earning the credit themselves. There are some sleazeball operators in this business. ET is a great place to rat them out and get useful feedback on who has a worthy reputation. Newbies beware...