I think I'm going to go ahead and take the plunge. Before I invest the time and money to get my Series 7, I'm trying to make sure I know all the negatives involved. I know about the risk of putting your money in an LLC with no insurance, the professional exchange fees, the SOES rule. I guess what I'm fishing for is comment on important issues such as software reliability. I've gotten the impression from other posts that they have more than adequate redundancy. If you trade remotely with them--does their software ever go down? Do the servers disconnect from time to time? If so, what do you have to do to get reconnected? Does anything ever freeze, like today during the fed announcement? Can you get someone on the phone quickly if you do have problems? Are trades/cancellations instantaneous?
I also have a few questions about EchoTrade. For instance, if you apply as a remote trader, trading with your own capital, do you still have to take the Series 7 exam? I looked at other LLC websites and they did not require the Series 7 if trading with your own capital. And are there any other requirements for remote traders? Can you still get bullets and professional margin? If you do take the Series 7 as a remote trader, are you allowed to trade with EchoTrade capital? I just did not find too much info on their website about this. And what are the fees besides equity commissions? How high is their bullet fee? Software fees? Data feed fees? And what about payout ratios? Is there even such a thing for remote traders? Any insights are greatly appreciated! Thanks!
Mummes: You have to pass the Series 7 no matter where you trade from. You still can trade their capital as a remote trader. I'm considering doing this from Norway. I've been in contact with them and their commissions and costs are really competitive. As far as I know they are cheaper than Bright. But i don't know much about their risk management, though. Does anyone know how long Echotrade has been in business? Regards, Oddmund Grotte
Ok this is a great firm. MJT I discovered them because of you. I 've never had Echo go down in the last 6 months I've used them. DOT went down but that was system wide. Pax Clearing has had 2 times they have been down for the internet traders but were up within 30 minutes. I just called risk management and exited all positions in seconds. I 've traded numberous times during FED announcements without a hitch. Risk management is available using MSN messenger for members, if no interent call their phone and hit the star key. Vinny or one of the other managers answers the phone usually on the first ring. Trades are instant. same with cancellations.
Any trader who trades with an LLC requires a Series 7. It's that simple. If they are a professional firm they require it by the NASD. There are brokerages that are set up at LLC's that don't require a 7 but they aren't professional firms. Echo isn't set up for retail accounts, only professional accounts. I'm currently a remote trader and can get bullets and professional margin. Bullet fee is at cost of .03 a share. They do this because they realize traders trade more if they own bullets. Software/data fee run for $300 a month which is rebated to traders who do over 300,000 shares a month. Office traders pay $600 per month and that's rebated at 1,000,000 shares. Echo isn't a proprietary firm. You trade your capital, plus theirs. The losses and gains are all yours. Which is of course the best option for highly profitable traders. (nobody is taking a % of my winnings!!!!!!!!) rtharp
Echo and risk management There is a seperate room that is locked during trading hours with a risk management team for the control at this firm. The software is automatically programmed to limit risk. The # of longs, the # of shorts, the # of shares based on the tier/volatility of the stock, the amount of overnight allowed is configured. Risk management will be talking with you if you do take on a huge position to find out what you are doing. They have been in business for just a few years. rtharp
RTharp, How difficult is it to become a remote member of EchoTrade, assuming that you pass the Series 7 and have at least $25K when trading NYSE and $50K when trading NASDAQ? Are there any other requirements such as interview, min GPA, min trading experience, etc.? Thanks!
Echo give you a questionaire to fill out. There are certain traders they they don't want who have taken too much risk in the past. rtharp
Rtharp, You said: "Bullet fee is at cost of .03 a share. They do this because they realize traders trade more if they own bullets." Is there a minimum bullet share size? Or could you theoretically buy as little as you want? And could you elaborate a little on the mechanics of setting up bullets? For example, how long does it take to get a bullet set up? Is this time affected by anything? Can you get a bullet on any stock? Can you set-up a bullet at any time? I find the use of bullets fascinating. They sure can be a great addition to your daytrading arsenal. I just don't know the intricacies of them yet. Thanks in advance!