Is this is a good deal?

Discussion in 'Prop Firms' started by apex82, Nov 30, 2011.

  1. Intraday automated system on US equities only(approx. 10-20 symbols)
    75% of the trades will be adding liquidity
    Approx. 500k shares per day - 10 mill per month
    Account size is 1 - 4 mill

    Offer from institutional brokerage(not prop firm)
    Min. acct size is 1 mill with 6.66 leverage
    .0010 per share
    minimum volume of 3 mill share per month
    $750 per month fee for quote API
    $300 per month for data subscriptions(inet etc)
    $400 per month for colocation of my server close to the exchange

    Does this seem fair? Any aspects that are missing or could be negotiated? Would I better off going through a prop firm( I want high leverage but dont want to give a % of profits)? I am also concerned with the security of my account at a prop firm.
  2. hitnrun


    you would be better off going with prop firm
    take advantage of the leverage with a 99 % payout
    there are some good prop firms that would meet your needs
  3. ScottSam


    Are you located in the US ?
  4. No, it will be set up as a foreign corporation. What prop firm would you guys recommend that has the most security/insurance for your funds? I also need a fix protocol for the system.
  5. noone3


    Seems ok, but i have seen better.
    i.e. less monthly fees (no fee for the api feed), slightly better execution, and less min requirement for same leverage
  6. How could you achieve better leverage for less funds? I believe the law is 4:1 up to 1 million?
  7. is a retail broker, so it may not be what you're looking for
    idk how much the leverage is, but the minimum amount is far less
    the people there are flexible, you can probably negotiate a rate
    das api is $100 or $500 a month depending on many orders you place
    data subscription is not bundled, but idk if they'll give you some kind of deal
    idk about the colocation, you'll have to work that out with das directly, i think
  8. I'm trading down in the Bahamas with a firm that might be able to meet your needs. Its a small to medium sized broker but so far I've been very impressed with them (the owner seems like the type who can make things happen).

    Send me a personal message if you're interested.
  9. Some retail brokers will give you portfolio margin (6.67 to 1) with 100k. Regarding prop firms, you cannot get "insurance" as you join them as a "member" and not as a "customer", so the funds are not subject to SIPC protection as with a retail account.
  10. Ferris


    Do traders really still fall for this type of offer? How is it possible with just a simple search of this site to even entertain the thought of putting any money up with an unregulated firm. The reason the owner seems to be able "to make things happen" is because he is under no regulation.
    Stick with a regulated firm otherwise this will inevitably end up as a cautionary tale.
    #10     Dec 2, 2011