There are lots of scams out there, but CBSX firms taking a cut of trader profits isn't one of them. Although the CBSX is very cloudy with it's regulations, they've made it clear to their member firms that they can't continue offering 99% payouts, so most firms have gone to 90-95%. If you're at a CBSX firm that still pays 99%, you should be careful with how much equity you leave with them because they clearly don't have long term goals of staying in business. From my experience, CBSX firms in NYC will offer 90-95% payouts and in exchange lower your commissions, so really it's a flat. The business is commodotized now. Just shop around for deals, but only shop with firms that have reputations of paying traders with no exceptions.
their is no specific rule about payout with cbsx registered firms. 99 % is common. However some firms will say they can only pay 90-95 % because its a gray area. Only a excuse for the prop firms to take a cut of your profits . Until their is a speicific rule by the sec of what the payout must be for all. Don't be a fool & give away your money to any firm with this bs excuse. their just putting their hand in your pocket.
winitall: besides, the only thing that any of the prop firms I have spoken to will give you is 4 to 1 on overnights which I can get just using my reg T account. _________ Winitall, you said you get 4:1 margining on overnight positions in reg T account; my broker (tos) says you cant get more than 2:1 on overnight positions. Do you have portfolio margining by any chance? That apart, did you find any firm that you like per your descriptions in the original post. I am also looking for firms which can give me better leverage on overnight positions and for more or less the same reasons as you. My systems have better per-trade profits on longer holding periods (ave holding period - 7 days). Just before i bumped onto your thread i was looking at WTS myself but they are purely intraday. -gariki
the post above is correct, with portfolio margin you can obtain the leverage you re seeking overnight but the caveat is that you'll have to have a minimum account balance which at IB is 100K (other firms may have different minimum amounts)
To clarify, portfolio margin requires a more balanced book. The Firm looks at each position individually and as a portfolio to come to portfolio margin. What overnight aum are you looking for?
What overnight aum are you looking for? ____ a 1:10 overnight margin would be awesome. Not sure what aum has to do with it. But if i could get 1:10 margin, then with a layoff of 10-20k i can control 100-200k worth of stock. Well, that not existing i currently do the same using ES. And i infact get better margining but it would be better to get that kind of leverage on etfs so i can expand easily. -gariki
I'm not sure if you mean calls as in options or calls as in selling predictions. I'll assume you mean options. "FREE" knowledge alert: If you do the research, you'll find that call options, on average, cost more in the spread (or lack of liquidity), and theta decay, compared to paying someone like IB 1.5-2% margin interest. Not sure what kind of interest a retail 4:1 or more overnight shop would charge as I'm not aware of such a beast. Another "FREE" tidbit that I'm giving away today: Option-able stocks are significantly less volatile on average compared to stocks with no exchange-listed options. This usually means lower returns for most directional strategies. As to HFT vs. daytrading equities, I'm not sure what planet some people are on. Where do a lot of you think the HFT firms are making their (almost every day of the year) profits from? Have you all be around for 15-20 years or more to see the transformation? Anyone walked around the the NYSE floor today vs. 15 years ago?
I settled with nobody, I guess if you have your own money to trade with there is really not much that any of the firms out there can offer you (with the exception of trading through a Goldman Sachs or similar company for the advantage of their research and offerings). I currently trade with an options account and I converted my 4 to 1 account to a 6 to 1 account. Most of the time I don't even really use leverage because I completely stopped trading intraday a couple of months ago because it was the only trading time frame where I was losing money. With the recent swings in the market I have not used any leverage because I have large positions in approximately 20 stocks and I don't want to be forced out of anything due to a headline that comes out. The more I thought about it, the more I leaned towards not using the leverage. Long story short, I switched over from a 4 to 1 account to a 6 to 1 account and then decided to just trade with cash. And if anyone is interested, the only firms that offered more than what I got were firms that were completely day trading based and had cbsx lock ups, which from what I understand are not insured (not positive about that since I never traded with one but this is what I was told)
They are not SIPC insured. SIPC insurance is only for retail accounts, not prop accounts. You've been down this road before: http://www.elitetrader.com/vb/showthread.php?s=&postid=2649521&highlight=insured#post2649521