Scorpion, I agree. A good commission rate can be the difference between profitability or washing out of the business all together.
Guys, let me state the obvious here. As was stated, this is a very competitive industry, very competitive. Everyone on this board knows what Bright charges. Yet, I would say Don probably has more traders then any other prop firm, even Assent. Now why is that. You guys are all intelligent. You can figure this out. There must be a reason why they are there or they wouldn't be right? This is not rocket science. If Don's traders could get a better deal somewhere else, my guess is they would jet. Capitalism 101.
at most props are you restricted as to what/how much u can buy/sell, in other words lets say i am leveraging ti 1million bucks, can i be long 250k of 4 positions if i am day tradig those 4 stocks? how do the risk guys keeptabs and is that ok--or would i need to be in 10 stocks at say 100k per thanks guys
midas thanks, just the facts from my experience. traders still have to find a way in hitting singles, being profitable in this biz, been doing this for years, so comm rates have dropped dramatically thats for sure. bright trading does offer a good situation for most traders, in spite of higher comm then the avg, but they do offer some benefits that traders like, namely the overnite leverage which is a major plus for their traders, their are no other firms that offer 20-30 -1 leverage overnite. to my knowledge. that is one of their major edges in this biz. i think if they were more competitive on comm for intra-day traders & only charged higher for overnite trades, which carries more risk then it would be more attractive to most daytraders. some traders don't want to hold overnite, so they pay a premium for what they can get at most other firms. bright trading is a solid firm & don seems to be a straight shooter from my experience, always very prof & friendly in my conversations , its all a matter of what you need & willing to pay for.. i just don't have a need to be licensed, so maybe my loss, but still a good option for others, too bad they are not more competitive for strictly daytraders. it's hard to pay more than your used to, but thats just the way it is , they stuck to their guns in staying with their biz model, that works for traders that take advantage of the high leverage, thats all.
its a matter of what exchange their connected with, a regulatory situation for the most part. but their are many options with solid firms in joining a llc structure to get what traders need all the same. which is the way many traders do. getting licensed for the sole purpose of leverage in not really necessary these days imo.. really just a waste of time & money to me. their are solid firms out their with good llc strutures that most choose from the big firms often mentioned here, many options to traders.
hi mav, yes many firms do offer overnite leverage, over 10-1 leverage,what i meant to clarify, thanks. as i said to my understanding the amount of leverage that bright offers is usually much higher then most that i know of, i don't know of any firms that offer more than 10-1 overnite leverage, i am familiar with vtrader & echo as well, solid firms. all the same, which very competitive comm in this biz. are their any firms that offer more than 10-1 overnite leverage, that you can share with us? thanks
Well, I run the Chicago VTrader office and I assure you, we offer way more then 10-1 overnight. Keep in mind, I'm referring to a JBO haircut, so it's not a fixed number. Also, while I can't speak for Echo, I am almost positive they offer more then 10 to 1 overnight as they have a JBO with Merril as well. It's all risk based haircuts.