i'm in my third year of trading now and making about $20k/mo, trading near 1million shares/mo. I have no cap contribution, am being charged 0.006c/share with 80% payout. i work for a sub-LLC at schonfeld on the retail side. no desk fees, but I have to pay for market data and reuters service. am i getting a reasonable deal? also was considering moving to a prop firm to get licensed. they're offering 5k deposit which isn't such a big deal but would give me 50k in buying power - a SERIOUS step back from where i'm at now. they're offering 100% payout but at 0.007c which would be lowered after i've proven my ability to trade with them. am i stepping forwards or backwards by wanting my series? the only reason i want to get my series is so that i can start on my own and receive leverage. is it necessary? currently in nyc, but looking for firms in cali as well. advise is appreciated.
That's a pretty bad deal if you have $25k to contribute. At your level it should be 100% payout at .003 or less. addition: if you deposit $25k you can easily get $1-5M bp.
.006-.007 p/s is ridiculous on 1 mil a month, moreso with an 80% payout, especially if you are (grossing, I assume?) 20k a month. For someone hitting those numbers, after 3 years of working in the business, I am surprised you are not experienced enough to have found a better deal by now. You could get around .003 and 99%-100% with that volume at any of the established prop firms in NYC. They might jack your rate to .005 in the beginning to see if you really are able to perform, but after that any smart business owner would give you market rates.
because i am willing to take a step back to receive my licenses. am i correct in assuming that having the series 7 and 63 will allow me to increase my leverage as an independent trader?
Yes and no. The licensing requirement is not directly related to bp, as these firms can dole out as much as practical--it's a regulatory issue. But going with a firm that requires licensing (with a 5k deposit, that is; you can put down 30k and avoid any licensing whatsoever) means you're putting your money in a somewhat safer pool. The firm asking for 5k and giving you 50k can give you as much buying power as you need--they're just being cautious at first. There's only one decent firm in NYC that I know of that doesn't require licenses and can still give you plenty of buying power (I'm sure a lot of other people know who it is). But of course, as Bright says, there are potential risks involved with putting your money at a firm that doesn't register its traders.
well, i started with these guys and i've been comfortable with the system here; i've developed my own filters and such using their prop software. i've just been putting it off. no, i am netting that.
well, i'm already offered decent buying power with this sub-LLC and am not required a license as im on the retail side. and i made no initial capital contribution so im not worried about us going under. Assent in Cali is offering me the second deal...100% payout at 0.007 until i show my quality, and they would sponsor me for my series. i understand now that i should be receiving a commission of under 0.005 closer to 0.003. does anyone know of quality firms in the L.A., Newport Beach, Irvine area? and which firms here in NYC offer the right deals that offer a superior platform and filtering software?