who has the best commissions at prop firms on futures? i was quoted 8 dollars per side by greentreetrading. does this seem kind of high? anyone have a better deal out there? i realize their deal is a little different in that you don't have to have a license, but they are already charging a monthly fee to trade with them, the commission rate just seems cost prohibitive for a small trader.
By prop do you mean that you put no money up to trade? Regardless if it is $8 per side and $16 a round trip for futures then that is crazy. I just talked to a friend in chicago that is at a prop firm and I think he said they pay $1.22 roundtrip. Of course they give up a good percentage when they make money, but the firm is trying to make money off the trader being profitable not on the commission side of it. When ever I see how commissions for prop deals in stocks I immediately think the old churn and burn strategy. Maybe someone from Greentree will be able to comment on this since there are numerous of them around on the board.
to be fair to greentreetrading, I did not clarify whether the rate was per side or round trip. the word used was "turn". 8 dollars a "turn". in my experience, that means per side. perhaps i am mistaken. at any rate, that STILL seems to be a high commission rate compared to most on-line brokers even if it is only 8 round trip. hope someone can shed some light on this matter.
sakimonohito: The quote you was given is meant for a roundturn trade. As far as i know that's the basic commission fee they give to traders from whom they not know how good they trade, how many trades a day they take and they only provide a very little initial cash contribution. Actually, these quotes can and will get significantly lower based on the volume the trader is doing, etc. For more information please PM me regards, tom
Commission range widely and they depend on a lot of variables: Track record Amount of Trader's deposit P&L split Volume There isn't one naswer to your question. The hardest thing right now is getting an opportunity with a prop firm. The good ones are extremely selective right now. If you have a Futures Trading Track record, you put up some cash and you trade size, your commissions will be low and you will get the majority of the Profits. Riskless
I don't care what a firm's split or agreement is. $8.00 per round turn is gouging, pure and simple. And they're locking you into that fee for the life of the employment contract. That is too big an obstacle for anyone to overcome - even the very best traders would have difficulty making it starting out with that kind of ball and chain... that is three to four times what you should be paying. I've never seen a Chicago area prop firm charge more than $2.50 per round turn for ANY contract - including Globex. I've seen many prop firms charge as little as 80 cents a round turn for contracts that the firm as a whole trades in large volume. Be smart, not foolish.
I am a new trader. and I don't have a track record. I am thinking perhaps a prop firm is not the best place for me to start out if I have to pay huge commissions. I thought greentree was a good place to start trading futures because they offer a nice leverage package for a minimal startup price, 5k is easy to come up with. I am not completely inexperienced and I do have some successful trades over the past year, but I am not a hyperactive scalper--I always give back the gains of my "planned" trades when I start to scalp--but there certainly must be successful futures traders at prop firms who trade on longer time frames than a few minutes or even hours. Just doing a little fishing around. Perhaps I will find a better offer, but if not I can stick with IB and regular margin rates(not to mention decent comissions). I thought it would be a nice improvement to work with a prop firm to give me that edge retail traders can't rely on.
You have to put up 5K and they want to gouge y9u still, shit if you want to put up 5k risk capital I would charge you 7 per turn and meet your margin calls, but im not in th bizness so t may take a while to get set up