"I'm just wondering why anyone would bother investing into this played out business model. Is it that hard to be innovative and think outside the box?" Obviously they arent aware that this model has just crushed firms and traders over the last 3 years. Last time I checked it isnt 2002 and not any moron can make 5k a day trading the KNOB/FIT. They have a nice lakeview and good tables though. The next step is to get one of the following, a smoothie bar, a massage lady or a game room "where traders can releax" Get this and you are officialy a standard propr firm!
Hi Steve This is a sincere question - where exactly is the added value from what you're offering versus other firms? Obviously if someone is doing huge volume it would make sense. Other than that, where's the value? Thanks
You must contribute capital to the LLC. The amount you must contribute varies depending on what your risk profile will look like. The member fee does not count toward commissions.
This model would be good for former Tuco or recently displaced retail prop traders, because they don't need a series 7. However it sounds like you don't want any traders with small deposits, a minimum of $100k deposit is rquired I believe but correct me if I am wrong about that? I assume you chose that number because it lets you get around rules regarding the CME exchange fees?
steve then i'm confused. so explain what you mean by heavily capitalized? you want people to put 50-100k into your llc? what type leverage are you giving?you're offering 25 cent options threw think or swim? are you clearing threw penson with tos are just using there platform?
I used $100k as an example. We do not have a hard cut-off. The capital required is decided on a case-by-case basis depending on what / how the member wishes to trade. Traders interested in membership should contact us to discuss specific numbers.
"We modeled our home base with the needs of a trader â at work and at play â in mind. Here the benefits are twofold, as you can make use of personal, fully equipped workstations for uninterrupted privacy or enjoy the company of approachable, like-minded professionals for idea generation and friendly camaraderie." Just saw this on your site. Ive got $100 that says there is a pool table, ping pong table or foosball table in the office. You are officialy a dime a dozen prop firm. Congrats!
To be frank we have never had to establish a minimum or set down hard leverage numbers as they have never been an issue. Much like capital, leverage is risked based. If you want to carry overnight positions in OTM good options your leverage will be different than if you scalp SIRI. We offer options through ToS and Sterling. All trades clear through Merrill Lynch Professional Clearing.
What distinguishes Cornerstone from a firm like VTrader Group? 100% payout and access to haircut, but VT doesn't charge a desk fee. I believe that VT's option comms are better than a quarter a turn as well. Not trying to start any controversy, but I guess I am curious as well as to the value-add.