MC- If looked at purely as a numbers game I don't think your analysis is that far off. You have to be an active trader to justify the member fee. Beyond that there are many intangibles. When someone joins our LLC they don't have to worry about us TUCOing. Certainly in the TUCO age stability and trust count for a lot. We maintain a top technology platform that our prop group also trades on. You are around other serious professionals. I will elaborate with more in the near future. All of this will be worth more or less to different traders. Needs vary. We are going to accept a small number of new members. If it doesn't appeal to the vast majority that is fine. We did not set it up that way. As far as SIPC- that is retail only. None of the llc prop firms offer it. Please let me correct a few other things. I wouldn't want to trade at a firm that offers 50-1 lever to a guy that has $25k down. That is just irresponsible, IMO. No. Our website does not say that. Our website explicitly says there is no series 7 requirement. None. Don't need it. Not required.
CME exchange fees attach to the member trader- not the firm. They are very explicit about this. The exchange fees you are charged are dependent on your status with the CME. Depending on your volume it may make sense to lease a CME seat. We can help with this process. I am not sure how it is reflected on the K-1. If you really care IM or email me and I will figure it out. Keep an eye on this forum I will detail more of the intangibles soon.
Bloomberg has a per user licence. For the occasional 'look-up' you may ask another trader. As much as we think they are a tad ridiculous we don't get cute with our BBG licenses.
Does the $1000/month fee apply to remote traders? If it does, this is a show stopper. Many of your competitors offer comparable rates without the fee.
Monstercat, At what Broker Dealer can a Retail account get .0015 per share for 1.5 million shares a month? I think you are really exaggerating your numbers!
Understood. You made mention of BBG in the software breakdown. I assumed that to mean each desk had access to a BBG terminal.
dog- the member fee applies to all traders. atticus- Bloomberg is an option. We pass through all software charges.
Ok, the $1000 a month applies to remote also and it isn't including the cost of execution platform. And you still pay retail exchange fees for futures, unless you go get your own membership. The deal isn't sounding as great, but am still looking forward to more information.
"We pass through all software charges" Make sure you check with the vendor what they charge the company. Most software deals are on a per company basis, bloomberg is an exception. It is a standard prop move to pass through "additional" softwaree fees to shore up the monthly income stream.