Greedy Brokers ?

Discussion in 'Trading' started by dedicated1, Dec 20, 2002.

  1. Example: 6k gross
  2. mrktwiz

    mrktwiz the point of this or am I totally dense?

  3. 200 sh/mo

    $6,000 Gross

    $1600 Net

    $4400 in costs and payout

    Shouldn't I get more of the proceeds than this ?????

    It's the @&%@ ticket charges that are killing me.

    I am beginning to think that my broker is on his side of the business because his greed was too much to handle as a trader.
  4. def

    def Interactive Brokers

    1. How much are you putting up? If nothing or a small amount, you should be thankful. You put up no capital, risk someone elses money and expect to keep it all.

    2. If you are putting up your own collateral, and your cost basis is about 2.2 cents per share as you claim. You can do better elsewhere.

    3. If you're not happy with your charges, find another broker. There are plenty around offering reasonable commissions.
  5. The key is just how risky a trader are you. If, as a trader, you are really not "risky" because you are consistently successful at managing risk (Net positive month after month), then I would imagine that the "hegde from commissions" that a broker uses against his capital at risk does not need to be so steep. He will still make a several thousand $'s a month, never really getting nervous about his exposure. A few months of this and broker is covered.

    I understand that I don't put any risk cap up. I am not trying to keep it all, just something fair. My volume is 200K/mo SO I guess a 25% take is fair in this situation, as opposed to a 67% take if I was to put some money up. Hmm, equating to a $2400 difference per month, I guess it's a nobrainer.
  6. def

    def Interactive Brokers

    Long Term Capital Management thought they were hedged too !

    Given that you say you're making steady gains I suggest two things:

    1. Take your earnings and trade on your own via a firm such as IB where commissions are .005 to .01 per share and you'll keep everything.

    2. Shop around at other firms for a better deal (or just sit back and wait for the PM's to come in)
  7. I didn't think there were many places left still charging per ticket plus per share. Even with nothing down, you should be able to get close to a penny per share with no ticket charges, especially with a track record. Who are you trading through and how long have you been there? What's your profit split?
  8. Thanks all for the replys thus's nice to discuss with others who know. I figured that I am getting it pretty good with the cents/sh & ticket charges on every trade. Just dropping the ticket charges would be lovely but I guess grossing about $2800 on 200K shares is just not enough for some brokers. I'm sure his costs still must be pretty high will all 50 traders he brokers for....Yeah Right. My split is 80/20. Do you know of any other shops/persons out there for someone with a track record and an open mind.?
  9. qdz


    Crocks (including investing firms and brokers) agreed to pay $1.4B. It's time for manipulators to pay the price. No doubt, IT IS ALL THEIR FAULT.


    Will they send my a check? It will be happy Christmas to cash in such a check.
  10. Any other thoughts out there ?
    #10     Dec 21, 2002