is it a good rate?

Discussion in 'Prop Firms' started by ksonsinc, Dec 31, 2005.

  1. Well hello ET pll
    Can you tell me this is a decent thing i am getting or am i being screwed

    0.005 rate
    no software fees
    doing shares 250 K to 350K a month but planning to do more
    10.1 Margin
    Pass through are all through me ECN BRUT soes
    That mean if i am responsible for the ecn rebates and pass through
    I trade mostly NASDAQ
    QQQQ DELL INTC ORCL CSCO SPY DIA AMAT VRSN NVDA SOME TIME WMT TXN ETC
    PLEASE ADVICE IS GREATLY appreicate - ??????????
     
  2. 250-350k shares per month isn't even worth haggling for a commission adjustment.
    When you get your volume higher (1 million+), ask for lower rates and you should get them.
     
  3. 0.005 seems to be decent with that volume. I pay almost 3 times (1.5 cents) with your volume, no software or desk fee. What is your payout rate and with what firm are you currently.
     
  4. more important than a good rate is software and bp. most traders fail to understand this.

     
  5. Holy crap, you are the one who should have started this thread. A penny and a half a share? Thats insane these days. You could get so much lower.


     
  6. Hey guys - I'm in talks with a few firms re: moving my account over.

    I'm looking to leave a firm that I'm with now, which puts up all the money (but keeps 25%) and to go on my own.

    One firm I'm talking with has offered me:

    70x BP
    100% payout.
    .008/share with a min of 500,000 shares/month
    No desk/software fee
    Hammer/Anvil (This is ESSENTIAL for me)

    My question is: Can someone explain the ECN fee structure to me?

    I've been overlooking and just round my ticket cost up to $10/ticket and I know I've been getting fleeced, hence my taking the initiative to make a move.
     
  7. alanm

    alanm

    Quote from FaderTrader:
    70x BP
    100% payout.
    .008/share with a min of 500,000 shares/month
    No desk/software fee
    Hammer/Anvil (This is ESSENTIAL for me)

    My question is: Can someone explain the ECN fee structure to me?


    $0.008 seems a little high.

    If you add liquidity for NASDAQ/ETFs, you get a credit of ~$0.002/share. Removing liquidity charges you ~$0.003/share. For listed stocks, the rates are between $0.001 credit and $0.001 charge for removing, $0.0005-$0 credit for adding. You probably will also pay SEC fees of about $0.001 for every $33 of stock price (on sales only). There's also a mostly insignificant NASD TAF.

    Adding liquidity means you post a non-marketable bid/offer and someone hits/takes it. Removing liquidity means you hit/take an existing bid/offer with a marketable order.

    Examples:
    1. Post a bid to buy 300 AAPL @ $74 on ARCA, and get hit, and you pay 300 * ($0.008 - $0.002) = $1.80 (assuming no minimum per order).

    2. Enter a sell order to hit an existing bid on ARCA for 300 AAPL @ $74 and you pay 300 * ($0.008 + $0.003) + $0.69 = $3.99.
     
  8. Thanks for that great response - super helpful. Right now, I'm paying about .008/share, plus fees, etc and I just round it up to $10/ticket and I'm able to net my tier size almost everyday with that.

    I'm not a scalper, so even when I bump my size up to 2000 from 1000, 500-700k/share per month is about what I plan to do. Maybe 1 million on a busy month.

    Would you be willing to provide some specific advice on how/what to negotiate with the firm I'm considering switching to? Part of me just thinks I should take it - they seem super understanding of my unwillingness to trade hyperactively and the leverage is awesome (70x).

    What would you do? Thanks in advance!
     
  9. sounds like Lynx, sounds too high for my taste.
     
  10. oh thats for sure a lynx rate those guys rape you so does madison trading they give you free lunch to keep you churning in the afternoon with your high commission deals
     
    #10     Jan 4, 2006