fwiw... i started with 5k and traded maybe 10,000 shares a day... now i trade in excess of 280,00 shares a day and carry a much higher balance... it took time and a little faith on the part of those who cleared me...it worked out for everyone... i used to trade maybe 10 futures a day and now average over 200...same thing... if you want a set rate...go work for minimum wage somewhere... at least you know you are all in the same pay scale... be creative...this is your livelihood...think and dream...plan and execute
Mr. Chiguy I tip my hat to you that you started out trading low volume and worked you way to larger volume and more profits. However, No need to make a dumb comment like: if you want a set rate...go work for minimum wage somewhere... at least you know you are all in the same pay scale... This makes no sense and unrelated to trading. Anyways Your right NEW trader should not be given huge leverage right out of gate. 40:1 , 50:1 If trader(me) puts up $50k then ones expect say 20:1. Most newer traders will not exceed or as I say "bump up against their limit" but I want to know for sure is: that if in my research I believe have found a winning trade I can put some shares behind it to make some money. As some have said on here standard rate at ECHO seems low. Could be to limit their own risk. People aren't "whining". People are sharing their ideas/experiences an open exchange of ideas.
Timcar, What are you looking for, overnight or intraday leverage? There seems to be some confusion with all the numbers being thrown around.
Agreed with opt 789 many different #'s being throw around. What comes across as ODD/unusual is this: At ECHO why some traders get different leverage to start. One says 100:1, other one says 30:1 while others gets 10:1. The different amount of leverage being offer would be justified if traders deposited vastly difference amounts of money.(Say if I deposited $5k and you $50k then amounts of leverage extended could be justified.) The 10:1, 2:1 deal is not much better than retail, so why go Prop unless trader is getting a great commish rate. The 30:1, 5:1 mention is not bad. If Prop trader got 8 times what retail guy gets then 32:1, 16:1. Most traders would not use MAX amounts of capital/leverage. Just when a good position appears. This could be the standard deal that everyone gets. It could be modified by Prop owners up or down but only slightly if they feel uneasy about someone. But whats dreadful is the large leverage differences one trader appears to get over another: allowing you to hold more positions and larger shares than me thereby allowing you better profit opportunities while we both work at the same Prop firm. If you are better trader than me great you deserve to make more money and at end of day then you can buy all of us poor guys a beer.
Another point to consider is that "using" 30 to 1 or more allows you to engage in much different strategies than just being relegated to "picking direction" or "picking stocks" - which most retail traders are stuck engaging in. Directional traders have a pretty tough time, even if you're "right" half the time. Using a $million to make $1,000 in the mornings doing the opening only strategy is much lower risk, higher reward, than buying "more shares" of some stock with leverage. This is a serious business, and we try to meet personally with our traders before they start, and througout their stay with us, so we can better ascertain their needs, and where they may need to use more (sometimes less) capital to become and stay profitable. My 2 cents...(yet, once again, LOL). Don
Timcar, You are answering your own question. Different traders deposit vastly different amounts, have vastly different experience levels, and have vastly different strategies. This explains why there are some differences in the leverage. Leverage is not just a double edge sword, it is more like a loaded gun. You have to be very careful or it will cause nothing but trouble. The bottom line is that ECHO or the other firms will give you more leverage than you should probably use. If you want to go with one of the prop/pro firms then you need to talk to them about all your needs, commissions, training, software, etc. Leverage should not be a problem at any of them so it should not be something you are concerned about.
Does Echo have a Chicago office? If so, is there a monthly desk fee? Where is the office located and how many traders are there? thx Jim
Does Echo have a Chicago office?.......... Yes. If so, is there a monthly desk fee?.......... I don't know. Where is the office located.......... In the Loop, I think it's near the CBOE. and how many traders are there?.......... About 10-15, I think. You can call 1-866-700-ECHO to find out anything you need to know.
Do they have an office in manhattan? I am visiting a couple places and would like to add them to my list.