Is this "Processing Fee" standard?

Discussion in 'Prop Firms' started by CapRates, Mar 9, 2009.

  1. CapRates


    I've been offered to trade for a very reputable prop firm so that is not a concern.

    My contribution is $10k with 100% payout and standard fees. I need to take the Series 7 exam.

    I've just been told that to get started I need to send them $900 for processing my paperwork (the fee schedule will be in this paperwork). This $900 fee includes fees for "exchange, exam, and processing".

    Can someone tell me if this is normal or not?
  2. presumably that covers you for your study materials for the series 7, and going through the examination?
  3. CapRates


    It does not cover my study materials for S7 since I've been recommended to buy "Smart 7 on the Web" for $150. Presumably it covers my exam fee.

    With that said, is $900 about right to cover the costs for my written S7 exam, exchange fees, paperwork?
  4. chartman


    Firms that charge $900 or more are over-charging. Check with FINRA for the cost of S7 exam, fingerprint card and application fee.
    Every thing above the basic cost goes to the firm.
  5. From my website, clearly spelled out:

    Bright Trading, LLC- $100.00 processing fee.
    Chicago Stock Exchange - $500 if filed between January 1 through March 31
    $375 if filed between April 1 through June 30
    $250 if filed between July 1 through September 30
    $125 if filed between October 1 through December 31

    FINRA (formally known as the NASD) � $250.00 Series 7 Examination fee
    FINRA - $85 Web CRD filing fee plus $95 for any disclosure page.
    FINRA - $30.50 Fingerprint processing fee
    The following states require additional examinations:
    Series 63 in Massachusetts, Michigan, Missouri, Nebraska, Nevada, Texas and Virginia; $82 fee.
    Series 55 in Missouri; $80 fee.
    State Registration fee � This only applies to traders in the following States:
    Colorado - $8
    Massachusetts - $75
    Maryland - $35
    Michigan - $65
    Missouri - $50
    Nebraska - $40
    Nevada - $110
    New Jersey - $30
    Tennessee - $50
    Texas - $235
    Utah - $50
    Virginia - $30

    Obviously varies depending on when you register and if you're already licensed. From About $250 up to around $1,000 or so.

    Our fee goes to cover the Compliance portion of the process.

  6. What does this S7 title mean or its function?

    What job would require it?

    Can anyone take it?
  7. Series 7 is "Registered Representative" to allow working for a Broker Dealer as a broker. In our case, it is required to distinguish our traders from retail traders. Most Firms in the U.S. require it.

  8. im starting with a prop firm in nyc

    heres the deal they gave me:

    5k deposit (goes in my account to offset losses for them)

    8/10 commission (i know its high but im brand new and think ill benefit greatly from a collaborative environment and proffesional software) plus it seems that their training is reasonable.

    500 for licensing.... it seems like 1k is too high for this. if you google the fee for the series 7 it is about 500 bucks... i think theyre trying to nickel and dime u a bit.

    by the way, they said that theres also a 65 a month fee for the level 2 data (bid sizes and whatnot). Can someone let me know if this is normal/reasonable.... ive been using quottracker for all my trading before this and they offer lvl 2 for free.... i just dont want to be switching platforms while trading.
  9. I am with a retail broker, and they charge $85 for Level II type data.

    ArcaBook $10
    NYSE OpenBook $60
    NASDAQ TotalView $15
    #10     Mar 18, 2009