Steve, Does this include the sec and clearing fees ? and does this include he ECN fees/rebates. Sorry for asking many questions but I am new to prop trading and trying to gather as much info as I can.
No, I am only talking in terms of base rate. Sec fees and ecns are extra. If you are new to prop trading, dont expect to get this rate for quite awhile. You will need to do something in the neighborhood of 5+ million shares a month.
so what is the reasonable rate for a starter ? I know it differs from a firm to another but what's the average acceptable rate ?
Depends if you are willing to take a split as well. If you dont take 100% of your profits you can get considerably under 40 cents per 1k. That allows different types of trading you simply cannot do on $2 a thousand. Just weigh your options and pick the best one.
.005 - .007, but that isn't necessarily better than taking a .68 cent per-execution at a profit split (like at my firm) or .001 at 80%. If you remove liquidity, could get harsh. http://www.utropix.com/jmowery/PropFirms.html here are a lot of your options.