I GUESS THIS WASN'T CLEAR ENOUGH FOR YOU MORON....... Any prop firm that has more than five trades pays anywhere between 50 cents per thousand to 1 dollar per thousand.... Not a cent more. Whatever your commission cost is per thousand subtract a dollar per thousand (just to high ball it) and that's what they make on you.
Like I said before..... look at the jackass above me who has nothing to contribute aside from trying to correct my spelling on an anonymous posting. People just love to hate on others I guess.
Just so you know the commissions at keystone are about .20 a thousand so they are not getting rich off of the commissions. I failed with them mainly cause I could devote as much time as I wanted to. My "other" job gets in the way and lost a bit of passion towards trading. As much as I would think that I would love trading there comes a time to where one should realize that it just isn't my field. I have so much respect for anyone that can make money in this field by trading.
It believe it is 2 dollars per thousand but I also believe that they retain 50% of your profits while trading your own money. And at 2 tenths they are still making money on commissions fyi.
Hi Win... I appreciate the info that you've taken the time to share. And I'm sure many others are appreciative as well. Nonetheless, where else can one find the leverage that you get from a prop firm? I can trade with my own money, but that's with a retail broker. Trading with IB typically will cost about $5 per thousand shares, assuming good volume on each trade (otherwise it'll cost as much as $10 per thousand). With IB I only get 1:3 leverage (although the exchanges allow for 1:4). I guess what I trying to understand is... Is the cost of paying a prop shop simply the cost of doing business, as there's no place cheaper for the leverage you'll get? thanks, Walt
for a slightly different perspective on some "arcade" type props, you get 100% payout along with avg. 20 X leverage. these firms are negotiable on commissions dependent upon your monthly and per trade volume but are undoubtedly higher than the props where you split the payout because the "arcades" are making their money on the commish as well as the vig on overnights held whilst the others are making it predominantly on your profitability. FYI, you can definitely get better rates (like avg. $2 per thousand or even better with higher monthly volume) through IB when trading size and adding liquidity through their "unbundled" fee plan. good luck jones
I can only tell you that I was paying .02 per hundred shares plus/minus ecn. Yes they are making money but what I said is they are not getting rich off of the commissions. People on this board love to split hairs. My split was 90-10
Winitall, Although the points you make are good you fail to mention that this is probably the best set up a new trader will get. The training seems to be comprehensive and way better then other firm I've seen. And limiting your shares traded is probably the best thing they can do for new traders in order to teach them self control and how to wait for high probability trades. If a trader becomes profitable then by all means he can find another firm to trade his own money with and get 100% of his profits. Blowing 5k on training is way better then just blowing 5k and getting nothing out of it.
DT3, You're correct in what you're saying..... However you can learn the exact same information from some of the top traders in the world for a small fee each month via the internet. These sites have loads of instructional videos on every topic and have multiple traders in chat rooms all day every day sharing what they see. This type of educational program will benefit you far more than some power point slide show. And there are multiple sites like this where the traders teaching are consistent multi million dollar producers. So whoever is teaching you isn't putting up big numbers on a regular basis then you have to ask yourself if you're learning from the right people..... I'm talking about 5 digit profits on a day, not churning out a few hundred bucks. The educational site that I'm refering to only charge a monthly fee with no bulk 5k payment and you can cancel whenever you want. For your leverage question, there are plenty of arcade shops that offer around two bucks per thousand, they are still charging double what they pay atleast, and as with most firms you can pretty much get whatever leverage you want as long as they don't think you're wild. A friend of mine that just quit his job to start trading went to an arcade style firm and got a 100% payout, access to the companies educational site and 25 to 1 leverage. Right now he's just trading 100 or 200 shares at a time and getting used to trading. I'll let you know how he progressesl