Inside Look at Rates Charged

Discussion in 'Prop Firms' started by Steve Dillinger, Jun 6, 2008.

  1. Steve Dillinger

    Steve Dillinger ET Sponsor

    There is all kinds of speculation / talk about what 'the best rates' are. Who offers what?

    I was reading the Government's Brief against Tuco (you can find it by googling ""tuco and frederick provide day-trading capability" (google with quotes).

    Over several pages you get a pretty detailed look at the number of accounts / structure / cash flow / leverage / rates etc.

    From page 5, 6

    "[Tuco] sets the commission rate for new traders at $5 per 1,000 shares traded. Commissions range from $2 to $8 per 1,000 shares traded."
     
  2. I don't understand why you changed the text of the article... perhaps out of disbelief of the rates that really are out there, but I think it's pretty stupid to start a thread like this and then change the text of the document on your inaccurate assumption that the SOCAL District Court made a typo.


    http://72.14.205.104/search?q=cache...ty"&hl=en&ct=clnk&cd=2&gl=us&client=firefox-a

    The text from this link says:

    Tuco charges its traders commissions on their securities trades. Frederick
    negotiates with each trader the commissions that will be charged but typically sets the
    commission rate for new traders at $5 per 1,000 shares traded. Commissions range from $0.20 to $8 per 1,000 shares traded.

    -------------

    So there you have it, someone was paying $20 to trade 100,000 shares.
     
  3. Steve Dillinger

    Steve Dillinger ET Sponsor

    Wow. You are right. I missed that one. $0.20 per thousand. Now thats a good rate.

    Thanks for the catch.



     
  4. kean

    kean

    It is possible to find rates that low with stable fast execution. I pay 40cents/1000 shares +/- ecn +sec + nas fee. Alot of traders are getting hosed out there with payout % and higher rates. I trade about 100k shares a day.
     
  5. In the U.S.? Someone posted in another thread what look like all Canadian firms which doesn't do me any good in the U.S.. I looked up World Trade Securities which was one of the firms, and their site was incomplete, and came off sounding like an MLM operation instead of a trading firm.
     
  6. But what is your payout percentage?
     
  7. kean

    kean

    100% payout
     
  8. ive definitely got to say i do not believe you pay 40 cents per k and get 100%. Its just not possible.
     
  9. Steve Dillinger

    Steve Dillinger ET Sponsor

    A reasonable explanation would be that .0002 was the rate Tuco was charged and Tuco had accounts (the owner's would be one) that traded at cost.
     
  10. kean

    kean

    sorry $1.40
     
    #10     Jun 6, 2008