Lightspeed 'group' referral - Volume Pooling

I was wondering if any big volume traders would be willing to include me as part of their trading 'group' with Lightspeed. This way, the volume in the 'group' can be pooled up or aggregated to lower all the group members' commissions.

I trade about 200,000 shares a month and was hoping to have better commission rate by being part of such big volume trade groups. Thanks!

 

You would commingle your funds with a stranger, in their entity, to get better rates?

 

I don't think you will need to co-mingle your funds. If I understand it correct, you only need to be referred by them. Obviously, nobody is that stupid here, is he?

 

You should be careful with this. Read from page 21 on where it reads Allegations:

bob

 

Actually, there are many people that stupid, they trade security and paying a little more for someone robbing everything to pay penny different.

 

I really don't understand what the set up is so I should not assume there is wrong doing. If a group of 10 traders comes to me and say they want to each open their own account, but would like the advantage of being priced like they are one account, I would provide better commissions for each account but not the same as it it were one, because there is more work to be done. Each account on its own must qualify for an account with enough assets and any other requirements we and the clearing firm has. Victor Securities is an Introducing Broker like LS.

Keep in mind that any customer brokerage account with a master/sub structure will have more due diligence on it to make sure there is no wrong doing. So if you join a group to trade, to save on commissions, you should be careful that the group does business legally or you will be liable too as it is a partnership.

Commission rates should only be one criteria for the way you make your choices.

Bob

 

So, here is what I received from Lightspeed:

"All accounts and funds are separate. We only tally your volume together to provide the group rate.
No other relationship or affiliation between the accounts exist."

Like I said, all I need is a referral from someone who does a lot of volume. As simple as that. Thanks in advance!

 

Now this is an interesting concept that's new to me. Can futures trader be "pooled" with stock traders for lower commissions or would there need to be separate pools?

 

good idea. i think the normal route for this sort of thing is to go via a prop firm where round trips are much cheaper. It may help to share your current round trip cost per 1000 shares.

 

Any idea of which prop firm would be willing to offer that?