IB commissions lower than prop firms!! WHY???

Discussion in 'Retail Brokers' started by smokey_mcPaat, Oct 10, 2002.

  1. smokey_mcPaat

    smokey_mcPaat Guest

    how is it that prop firms charge more than IB does for commissions?
    IB- 1 cent/share up to 500 shares- 1/2 cent above 500
    so, a 1000 share order would cost $7.50

    well, i work at a prop firm and have to pay 1 cent/ share regardless of size traded- my 1000 share order costs $10 !!!
    I trade in blocks of 1000 shares, so I think I would appreciate it (along with everyone else) if we could get our commissions lowered to what the pikers who trade retail and no volume (hell, most of these guys do in a month what i do in a day or two for share volume) so, what gives? and the worst part is that i have to pay a $600/month desk fee to use outdated equipment and pay more in commissions to trade at a prop firm- thats bullshit and just goes to show that prop firms need to get competitive in their rates or else many of us will seek better deals elsewhere. I think that for the volume i trade (2-3 million/month) that i am getting screwed. yeah, i know that trading in an office offers advantages over trading at home, but not when it is costing me around 7-8 grand more just to execute my trades per month- i would be able to add around $100,000 to my yearly net with a better rate!!! and yes, i am starting to look around in my area for better deals.

    lets get with the times and quit gouging our traders, prop firms!!!!
    at least match what the retail scrubs trade for- i mean, i am a professional trading volume and johnny-can't-trade-at-all pays less than i do. pure horseshit and owners lining their pockets if you ask me :D :D
  2. Then why are you posting this here? If you have a problem with your arrangement with your prop firm, then tell them about it. Are we suppose to call them up for you?

    "Hi, yes, Mr. Smokey pays way too much -- just look at Interactive Brokers! You guys are costing him $100,000 a year. I mean, he's such a good trader and all, but when it comes to obvious money management tactics and cost-reduction research, he's a little slow. That's why I'm calling for him -- could you cut him a break?"

    How is it that you've been an active participant on this board and you just "suddenly" realized this discrepancy between commission rates? Don't you find that a bit odd?
  3. smokey_mcPaat

    smokey_mcPaat Guest

    ahhh- the idiot with absolutely NO trading experience decided to share his infinite wisdom with us- we should all feel so lucky!!
    yeah, kid, i am looking around at other firms and i have been told rates will be reduced by year end at my firm- i want it now so i don't have to be overcharged for even a few more months. this post was intended to be seen by a certain firm owner who seems to like hanging around these boards :D :D and maybe he would realize that the rates volume traders are currently being charged are archaic and too high (ESPECIALLY when you consider the firm's costs, which i know and will not post here for there is no need to get people emotional about just how much they are being overcharged) and act on it- reducing our commission costs, keeping his traders happy (feeling that they have a fair deal instead of being overcharged) and at his firm- which is where i would like to stay as i like the firm and the traders there- but i WILL leave in a few months if rates are not reduced . that is all-

    no need to be a smartass to me aphexcoil- especially when all you do is post on ET all day (18 posts/ day average) and don't trade- when you have actually traded for real and not on paper, then maybe i will give you some respect- and i think i speak for a lot of people on this board when i say that- but, until you actually place a trade, you are still just a stupid piker and you annoy me with your incoherent, uninformed babbling- trade more (well, start trading actually) and post less, kid.
  4. Simple.

    Because today was a layup. It was a very easy day. Many people made easy money on an easy day and now they feel froggy and ready to jump.

    Nothing new it's just the same 'ol same 'ol - Fear, Greed and Ego.

    But the real question is how does a professional trader use this information?

    Any Idea?
  5. smokey...you KNOW you could get a lot better deal at the other prop firms in SD. You are still paying a desk fee? Hell, I am not going to just pimp my firm.....but mine and any of the others would offer you much better. Feel free to stop by anytime.
  6. smokey_mcPaat

    smokey_mcPaat Guest

    dr zhivodka- lets keep this thread on topic here- we are discussing why prop firms charge more than the retail scrubs at IB pay-

    but, in answer to your question- "how does a professional trader use this info??"- we use it to be informed of the discrepancies in our industry and to keep abreast of industry trends in commission charges- then we can leverage this information towards lowering our own costs- firm costs keep getting slashed- where is the pass through on the savings to the traders that work hard everyday and are the lifeblood of these prop firms? that is the issue here.....
  7. wake up and switch to IB or another similar firm. Maybe those "pikers" are a lot smarter than you think. Maybe the dumb ones are those that pay $600/mo just for the priveledge of trading at a brokerage office and pretending that they have a real job.
  8. smokey,

    I understood your plea the first time. But you're are going about it the wrong way. Believe me Bob doesn't give a F*** about your problem and Don is much too obtuse to even see the problem.

    My question wasn't aimed at you per se although it may have seemed like it.

    My thought was a board-wide blast on something a bit deeper.

    Care to play along?
  9. I resent the following remark

    hope you are a gentleman usually in real life.

    " ... why prop firms charge more than the retail scrubs at IB pay"

    I am a prof trader and choose IB for now.

    If IB were for scrubs ... they would go out of business ...
  10. I have been a customer of IB for

    3-4 years .... and am still overall amazed at the deal "scrubs"
    like me can get from them compared to other firms.
    #10     Oct 10, 2002