On a side note I had a serious discussion with my boss and looks like my contract will finally be done this week. Quite honestly our team had a rocky start but thankfully it won't count against me as I was never "officially" in charge. He was pleased with my recent recruitings and gave me the license to kill. I will be able to outbid everyone include Bright & Echo rates, provided of course, the trader can come up with even half of the capital that they have to put up at those other firms and some sort of verifiable track record. A look at Bright & Echo's 2002 pricing schedule indicated that Bright is capable of going as low as 0.75 cent per share for someone who does 3 million shares a month, and Echo didn't really say how low can they go. Well, I am allowed to go as low as 0.65, and if it is some super duper mega scalper, my boss is not afraid to hit them with 0.5 cents a share. My boss finally acknowledged my legit concerns of those trading firms as high powered competitors, and he put together a "starter's kit" to battle Bright's equivalent. For example, Bright offers 100% payout, no ticket charge, 1 cent a share, to anyone who can come up with 15K. My boss is offering the same thing, WITHOUT the $400 a month desk fees, regardless of whether you trade 1 million shares a month or 10000 shares a month. And we will beat any rate you currently pay, by at least 0.05 a share. And they will be able to trade bigger sizes at equivalent capital contributions. This is just an example of how aggressive our owner is in his quest to eventually create the most powerful day trading firm in this country, and he wants me to do some of the grunt work. So if anyone is interested, just e-mail me your current rates and I will tell you what I can do to put more money in your pocket. The goal is to build the best possible team, and the mark of a great recruiter is his ability to bringing people who are ALREADY consistently profitable (if you are averaging $500 a day you probably won't want to move around too much).
Hmmmm, I am beginning to get _REALLY_ enticed. 1) Is Worldco only out of NY? 2) Does Worldco support remote trading? nitro
Currently I am only interested in New York area candidates. Please e-mail me if you have any questions and keep this thread clean!
Hitman, I thinks it's great that you are so pleased about your firm and how competitive their rates are for 2002. But I have to say (and maybe I'm not normal....actually I hope I'm not) that I really don't believe price is everything. It's not always about who has the lowest price. I believe that even in this business there has to exit some kind of loyalty. In the business I was in before I began trading, we were constantly bombarded with new competitors offering lower prices. As it turns out many of them went out of business so we didn't have to worry for long. I am not saying you firm is going to go out of business, just that price is not everything and at some point in time you have to draw a line and say this is as low as we are willing to go. The rates the other firms offer are very competitive and I sure each firm has it's own advantages/disadvantages. While I am pleased for your success and wish you the best, in all honesty, if someone is investigating joining a prop firm or is interested in moving firms for whatever reason, I'm sure they will inquire about pricing. Many others, myself included are happy where they are (which for me happens to be Bright). DarynC
All I am saying is, if there is any possibility to have a good trader trading at Worldco, I will do whatever it takes to make it reality. And price IS the single most important piece of the puzzle, and all I am saying is if you are interested in joining a firm and happen to be in the New York area, send me an e-mail AFTER you get your best offers, you will be pleasantly surprised.
"...) that I really don't believe price is everything" Price _IS_EVERYTHING_ if your trading style is comission intensive, like scalping or pair trading. Granted, when I say everything, I mean all other things being equal. For example, equally good executions, good "atmosphere" at trading office, helpful managers, continuing education, etc. I can tell you though that if these things were true, then, unless I felt some ties to the firm, I wouldn't hesitate to leave just because of "loyalty." Bottom line, if I halfed _my_ comission, I would make 50% more in profits!! nitro
Bottom line, if I halfed _my_ comission, I would make 50% more in profits!! This would be true only if your net profits-to-commission ratio is 1:1. If it is greater than 1:1 then the overall effect on your net profits would be less. Most scalping methods are around 1:1. I would also look at education as a strong consideration, even for traders who are currently profitable. If the difference in price between firms is small, but your current desk manager is making 7 figures consistently year after year and is willing to teach you his methods, while the desk manager at the firm offering you better slightly better rates is only making 5 figures and has had only one year under his belt, then maybe you are better off staying. That extra education may take you to that next level. This would be especially good advice for break-even and/or new traders. In other words, price is relative.
"This would be true only if your net profits-to-commission ratio is 1:1." Yes. "If it is greater than 1:1..." No "... then the overall effect on your net profits would be less." Yes ..." Most scalping methods are around 1:1. " ?? Neat idea for a thread to pose the question to scalpers on the list. nitro
Everyone makes a good point here but for me If I had a team leader making 7 figures a year and he was willing to teach me his approach in an understandable format I would be more then happy to pay 2 cents or higher per share. Cheap commission is great if you are a highly profitable scalper looking to cut your overhead.
from shorteee: "If I had a team leader making 7 figures a year and he was willing to teach me his approach in an understandable format I would be more then happy to pay 2 cents or higher per share. " Which firm has best team environment? Anyone has an idea, can you please share?