I'm currently trading at one of the larger sell side firms with the firm's capital, and also on the side in personal accounts through a discount online brokerage. If I were to trade with a prop firm that requires you to bring your own capital, what kinds of commissions should I expect? How much can these rates fluctuate based on how often or how little you trade? I imagine the commish schedules are on a cents per share basis? Are the bottom line commissions anywhere near what you'd expect from a Scottrade or an E Trade or is that just a ridiculous pipe dream and they are much much higher? Thanks in advance for any help.
Commissions are usually on a per share basis and can vary widely, depending largely on the volume you trade, other things you are looking for like training, but also who you know and what shop you end up at. Some places can still get away with a penny per share or more by providing capital backing and training. Mega volume scalpers putting up their own capital can find 2/10ths of a cent per share or even lower. Experienced traders will tell you though that commission rates are only one thing to consider when looking for somewhere to trade. Firm stability, training, software, buying power, etc all are factors to consider.