New Broker

Discussion in 'Trading' started by bshethia, May 26, 2011.

  1. bshethia


    :) Hi

    I've been researching both brokers and prop trading firms to start trading. I'm primarily a day trader ( about 50,000 shares a day) in heavily traded stocks such as Ford and never keep an overnight position.

    I attended a seminar at Hold Brothers Capital, wasn't sure what to make out of them. They claim to have been around for 17 years. They charge about 0.03% per share or $ 3 per 1,000 shares, need a minimum account opening of $ 5,000 (capital contribution) and allow you a daily leverage of 20:1. From what I understood, while they do provide the platform, you're essentially free to to pursue your own trading strategy and their principle goal is commissions. However, going through the paperwork - it seems that you have to apply as a class b member with the capital investment of $ 5,000. This seems a little anomalous with a "brokerage" or "client" account.

    I'm more inclined towards a brokerage but suspect that I won't get as much leverage as a proprietary trading firm or as low commissions.

    Would appreciate any recommendations.

  2. Actively day trading with a broker you will be required to deposit at least $25,000, you won't be given more than 4-to-1 leverage, and your commission rate will probably be closer to $0.0035 to $0.004/share (unless you can negotiate it down).
  3. bshethia


    Thanks Thundrbolt

    Whom would you recommend for prop trading - it seems that they usually want a capital contribution commitment for a year?


  4. carlal19


    Your Idea is great.
  5. Excellent outlook and insight....