that's a myth kept going by prop groups. any cost savings they will just keep for themselves and you will not do any better than if you dealt direct. i've always been on my own and several other traders i know of (large and small) and we've never had problems that couldnt be reasonable resolved. this 'leverage' you talk about is another myth. if you're a small trader in an LLC/prop group you're still going to have no leverage. Bottom line, the amount you save by dealing direct and cutting out middlemen far outweighs any advantage you THINK you might obtain going under any group. by the way, in the current environment, if you do 2 million shares a month you definately have decent leverage!
Come on...its not a myth. Its common sense. A group doing 50 mil shares a month will have a much favorable deal....I know And I'm not a prop group... Dealing direct always will get you more runarounds Unless you are doing more than 2 mil shares a month.
Come on, use your common sense. yes the heads of the group will get a better rate, but unless you're one of the heads, you're not likely to see any of that savings. I know a lot of groups and their pricing behaviours and I've rarely seen them give out fair prices. you'll get more runarounds, sales talk and bullshit dealing with a middleman! think about it, you're DEALING WITH A MIDDLEMAN!!! why dont you call lynx (or any other group, this is just the one i'm thinking off the top of my head, but you can substitute any other) tell them you do 2mm and see what bullshit rate you get. then call andover directly and I'll guarantee you can get a better rate (in a decent office with good support) !!!
oh I get it now...you're with one of the mysterious subs of andover.... true, andover is the cheapest but you get what you pay for.
Yea those low rates with news service, bloomberg, squak box, tech support, and fast execution really suck. I guess the other choice in my area would be to go to an office with no news, no tech, unreliable system, and the privledge to pay higher rates. I think I will be a cheap ass and stay where I am at.
What office doesn't have all that? I'm assuming that you are talking about professional offices. Why would you assume that you are the only one with that?
There are 4 offices near me that are considered "professional" offices and some offer "professional" leverage yet they don't have these basic items. No tech to cut back on costs, no news service (they assume a squak box is good enough, and will alert you to big news items), and their network/software is very questionable. So I am not assuming other firms and offices do not have these items, but I know in my area it is not common place.
That's what I meant....if you don't have them, I wouldn't consider them "professional". If you don't have that, you should just trade from home....no advantage. My comments were directed at "professional" firms ONLY.