Dude, You are paying way too much. .004 is a rate for someone trading 160,000 shares a month...not in a day!!! You should be paying 1/2 of that. Furthermore, you are paying .003 to take. Most prop firms have dark pools where you can take liquidity for half of that. Do yourself a favor...call JC Trading Group tomorrow. They will lower your commissions and ECN fees dramatically!
All US traders must have a Series 56 (or 7) to trade at a registered (read legitimate) prop trading firm. If you are a US citizen and the firm doesn't require one then it is an unlicensed and unregulated company and I would be very careful. The 56 takes 30 hours to study for and then you will be trading in the correct structure. I traded at one of those offshore places before realizing how stupid it was. Luckily I stopped trading there because a few months later it got shut down and traders still don't have their money back. Just take the stupid test....it will save you thousands of dollars and you don't have to worry about your money disappearing overnight. Seriously, If I can pass it any one can.
When I contacted JC a few weeks ago, they offered me .005 per share commission. Is this standard?? Also, could you explain how the commission rate for the take and ECN fees work with JC? Thanks in advance!
.005 is a fair rate for a trader doing minimum volume. Once your volume increases you should ask for a lower rate. The OP traded 160,000 in one day and is paying .004. He will never make money over the long run. He has to make $20k a month just to break even!! Seriously!! If he breaks even one day he still loses $1000. Using a prop firm you get to choose where you send your orders and different exchanges, ecns, and dark pools charge or rebate you different amounts. JC Trading has over 100 different places to send orders to. When I was with the offshore firm they had 4. Some of the ECNs even PAY YOU to take liquidity. It can mean a lot of money in the traders pocket if he does a lot of volume. I hate to sound like a JC fan boy, but I have traded there for over 2 years and my experience has been phenomenal. Do a search here and you will see others have the same opinion.
JC seems like a good fit for me so far. Jeff seems like a good dude and has been forthright and very helpful so far. Thanks for the info! Is there a way to know prior to placing the order if the ECN will charge you or which will rebate you? Been trading retail for a few years, just not that familiar with the commissions and fees charged by Prop firms.