I have been a member of ECHO for about 2 years now, and I have become very knowledgeable with the firm by just asking the right questions. I have also recently read many posts on this forum regarding ECHO. I have built a pretty decent relationship with everyone that works there so I figured I'd just ask them about some things. It seems that some of the stuff said was untrue regarding ECHO so I just called the boys over there and asked. Their leverage is pretty standard for newbies and veterans. I've never had to ask for more. However, I do OPG orders and am allowed to send my orders to get over 30 to 1, as long as I begin closing my positions. I do not carry much more than that intraday. So even though my parameter is 30 to 1, I am allowed much more for my OPG orders. As for overnights, it is 10 to 1 overall for single positions. They will allow 5 to 1 on each side of a pair, but will extend more than one pair to you if you ask. The risk manager said that it does depend on the size of the account and the size of the pairs, though. I will try to look around the forum to get some answers to your questions guys.
I talked to the guys, again. ECHO is not Merrill Lynch. When Merrill took over Pax, they renamed Pax Clearing Corp. to PAX Division of Merrill Lynch Professional Clearing Corp. I think that it is a myth that Merrill owns ECHO. I have also seen a post from another trader that said he did not notice any differences. I have talked with the same few guys over at ECHO for the past two years. I do know a few guys at other places who clear with Pax that have noticed some name changes, but I have not. To say that the 'corporate types' have took over is just not true. Not one thing has changed for me.
Awful scarey that a firm would need to hold a minimal capital contribution from a trader for a year in order to meet some SEC capital requirement. Of course, not sure I understand why someone would need to make any small contribution to any firm. So, trader puts up money, is responsible for losses, pays commissions higher/comparable to retail, and gets margined/haircuts at high rates? Is this really a better business model than hiring competant traders that are able and have strategies that will make money?
I often wondered why any good trader would want to be an employee on a short leash and give away a chunk of their profits in lieu of starting their own 100% payout business by simply transferring a few grand from one account to another. No big deal, some like independence, some like employment..to each their own. Don
So which offices are still open and functioning ? For example you had an office in Long Beach - down the street from my house on alamitos bay . Are you still keeping any brick and mortar offices in Southern California ? How about in the Chicago area and Seattle ?
SoCal: Arcadia and Irvine at this point. Chicago - Still right above the CBOE on LaSalle, since 1992. No Seattle, but Langley, Vancouver, Kelowna in BC. Rob Friesen, moved from Seattle to Langley a few years ago, and did a great job with' the BC expansion. We have groups starting new (smaller in size) offices in various places (Boston area as we speak). We're focusing on the same business model that has worked so well in BC (solid local management, profitable groups)....and, of course, remotes (thanks to the risk control technology that GS has developed). Don
hello don have any former BRIGHT traders gone on to bigger and better things ? (i.e. hedge funds ) ? Don ... you forgot to answer these two Questions I asked a few days ago B: what percent of trades done by Bright traders are Listed vs Nasdaq ? C: what are the present trading hours permitted for remote traders ? ( i.e. is after hours allowed ) ?
Hey Don, Do you post an audited balance sheet? Theres an awful lot of vaguely worded comments here. An audited balance sheet cuts through a lot of fluff.
Hey Don what is your policy if some one blows up more then they have deposited like 5K or 10 K Do u take him to court or just have to take the losses as bad debt Your feedback is greatly appricated