How about a forum that is geared towards the costs of trading?

Discussion in 'Retail Brokers' started by TickerWatcher, Jan 23, 2003.

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  1. To make the DAT arena more competitive
    Why not have a forum where BDs can post their rates? Let them put their best foot forward.

    They can list why they think it is beneficial to trade at their firm and what to expect service wise.

    If they are bare bones and inexpensive, then they can state that.

    This will help traders decide if a particular feature of a firm is worth the added commission cost or if they need to look elsewhere.

    Yea there will be guys promoting their firm, but this may cut the BS they put on other threads.

    Traders can also post if some software or hardware is at an attractive price at a specific retailer/ vendor/ web page.

    Call it the cost conscious tread.

    I think this can help
  2. Let me ask you something.

    If a High Volume Firm pays 1.50 per ticket for Clearing

    And say another 1.00 per ticket for software

    They are going to let you Trade for 3.5 dollars per ticket as a remote trader?

    What are you doing 10 million shares a month volume?
  3. Ticker,

    I tried to pm you and it said that you cant get pms or something like that.
  4. EricP


    Unfortunately, I don't think this idea will ever work. The truth is that the BD's don't want to make the DAT arena any more competitive. The truth is the the DAT arena is getting killed as we speak, and many are going out of business because it is too competitive. The following, IMO, is why the BD's are having so much trouble:

    1) Active trader ticket volume has dried up dramatically in the past two years, as previously successful traders have blown up their accounts in the bear market. New clients are not coming in to fill their places because daytrading is no longer glorified as it was in 2000 and before.

    2) Clients are demanding cheaper commissions, to match what 'the other guy' is offering. Competition, as you said. Ticket prices have dropped from ~$25 per ticket average in about 1998, to maybe a $8 - $15 per ticket average now. Also, many are demanding and getting per share rates, which are a definite advantage IMO for traders with the reduced liquidity in the market (and inherent 100 share fills).

    3) BD's using software such as RealTick III are being raped by Townsend Analytics, with monthly software fees of $300+ per month for their clients. Their clients expect to get the software free, so the BD must pay for this cost for all clients generating more than xxx tickets per month.

    => The bottom line is that most BD's I know of are struggling for survival. Don't cry for them, since this is what competition is all about, and it makes trading cheaper and more successful for all of us. However, don't expect BD's to intentionally try to increase the level of competition by starting a 'pricing war' here on ET.

    Just my two cents,

    3) The
  5. I heard tickerwatcher was banned because of this thread. If its true, this place is getting SAD SAD SAD
  6. Sioux


    Count FFastTrade in.

    We will challenge anyone to compete with our rates.
  7. If your rates are the best, why don't you post them on your web site? I clicked on the link in your signature, and there was no information about rates.
  8. They are posted on
  9. TickerWatcher has chosen not to receive private messages or may not be allowed to receive private messages. Therefore you may not send your message to him/her.
  10. JayS


    #10     Jan 27, 2003
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