Commissions Rates at Different Prop Desks

Discussion in 'Professional Trading' started by sherman4020, Dec 10, 2010.

  1. Hey,

    Trying to compile some data for the commission rates for different prop desks. Interested in First New York Securities, Trillium, Chimera, G2, Quad Capital, T3, DRW, or any other proprietary firms that people are familiar with the commission structures.

    Thank you ahead of time.
     
  2. Does anyone know if they are finra B/D or CBSX B/D. From what I am hearing, the finra can payout 100% and the CBSX only 90%. Finra requires licenses though.

    Can anyone recommend / not-recommend any finra B/D's?

    Thx.
     
  3. it will vary based apon vol per month.

    typically under 1 mil shares looking around .003 - .005

    1 mil - 2 mil .003 - .0025

    is an a rough estimate.

    some prop firms who are non b/d cannot mark up commissions, one can operate as a non b/d if they accept no capital contribution and cannot mark up trading commissions - this firm will provide capital and typically takes a profit payout
     

  4. just take the S7, not that hard of a test. spend 2 weeks studying and pass the test.

    if it is a different of 10% payout profit, a few hours a day is worth studying for
     
  5. Payouts of 100% are for retail accounts, so to differentiate between retail accounts (customers) and prop trader accounts (members), FINRA b/d's that operate as props can pay 99% max, the remaining 1% goes back into the firm. For CBSX, the payouts do vary, however I'm not sure about the 90% cap.

    You can conduct a broker check on the FINRA.org site or call the CBSX member dept and ask them directly.
     
  6. Sure he can pass the test. Tell him how he can use that license for prop trading when basically there are only 2 firms left that hang the series 7 and thats Bright and Echo. (tell me if I am wrong)

    Personally, I think its a waste to take the 7 now since the majority of firms are now cbsx members. It would probably be wise to wait and take the proposed cbsx exam when it comes out.
     
  7. the word out in the street is that cbsx exams are coming as soon as february.........so get ready to hit the books again........
     
  8. Here's the excerpt from the SEC's November 12th 2010 regulatory release:

    "CBOE is developing an alternative to the Series 7 examination that is specifically tailored toward individual TPHs and associated persons of TPHs that are engaged in proprietary trading. CBOE has represented that within six months of the date of this Order it will have completed the development of this qualification examination and will file the examination with the commission. All individual TPHs and individual associated persons must take and pass the new examination, as applicable, no later than August 12, 2011."

    Here's the full text of the .pdf below.

    http://www.sec.gov/rules/sro/cboe/2010/34-63314.pdf
     
  9. samhud82

    samhud82

    Some firms seem to charge.003 per shares i.e $3 for a thousand shares and some charge $0.15/1000 shares ie 0.00015 per share. I cannot understand why there is such a HUGE difference
     
  10. rmorse

    rmorse ET Sponsor

    Each prop firm offers more than just rates. Same for introducing brokers. The end results are clearance and execution. Why does everyone feel that each BD can offer many levels of service at different locations across the country, with different technology, different levels of capital, and do it for the same price.

    Everyone is so concerned about rates, when rates should be just one factor. What's more important, is who can be the most helpful in you running your business, and end up with the most net profit at year end for a given level of risk.

    The cheapest rates on the street come from prime brokers with minimum capital and no over night positions allowed. Is that where you want to intrust your money for lower rates. Then you have a problem with an execution,missing trade, incorrect charges for rates and rebates etc. Good luck finding someone to fix it.
     
    #10     May 14, 2011