Hi all, I have a question for any proprietary traders out there. I am considering making the jump to a prop firm, but where I live there is only one, Onsite Trading. Their commission structure for the retail side is hideously antiquated ($20 + ecn fees for Naz and $15 + .01/sh for NYSE) so I assume the prop fees will be similar. With volume the amount drops, but it still isn't as good as a per share structure like Echo, Bright, et al. until you are doing huge size. I know Tharp likes Echo since he is with them, but I'm trying to decide if actually trading in an office with other traders is enough of an advantage, if any, (over remote trading) to be worth the higher fees. I know this is heavily dependent on your trading style, but I think I would like to be in an office environment (I don't yet make $30k per month and would like to hang around those who do..they all seem to be in propietary offices). Are there any traders on this board in an Onsite Trading office and doing well with the fee structure? Or traders in firms with similar fees? Am I crazy to even think that this is the way to go? If I could move and use another firm with a better fee structure I would, but a personal family commitment keeps me in my town for now. Any sage advice from you guys (or gals) who have been there and done that? Thanks, Kirk
IMHO, that fee structure is too prohibitive. Being in an office can be a great advantage but starting out those fees usually blow out the new trader. Even if there are excellent traders in an office that doesn't necessarily translate into them helping the newbie. the only way to learn how to trade is to do it. and having the freedom to "play" with 100sh lots is the best way to start out. if you can't move to boca raton to trade with worldco and you're only choice is onsite, then may i suggest trading remote with a trader friendly firm. there's a great "room" on "paltalk" that you can use during the trading day, it's live interactive voice with an excellent trader who will help you learn the in's and out's of the trading day. if you need more info let me know. btw, roll tide.....go dawgs!!!!!
Bryan, I don't want to get off of the subject, but I tried to email you, but no email address. How is the paltalk? I've heard mixed reviews and think that it might be a great solution for a few traders who'm are all over the country. Could you give me some more info? War, Where are you located? Are you currently licensed?
mamt8r, i like paltalk....the room i am refering to is trader alliance, it can be found under "professional commerce". there's a guy who runs the room who has alot of experience trading and seems to know what he is talking about. it may be old news for some veterans but for newbies and intermediates i think it is a great learning environment, especially if no other options are out there!!!!
Thanks guys mamt8r, I live in Birmingham, AL and am not currently licensed. I would do it for the right opportunity, but with no firms here until recently it hasn't been a priority. Bryan, Thanks for the info. I agree with you (well, except for the roll tide part, lol). I don't want to make a bad decision just because I like the office environment. And there is no guarantee that there will be any good traders anyway, especially in a new office. Perhaps its best that I look for something remote until I am free to move. War Eagle! Kirk
Hi WarEagle, Echo has opened a new office here in Atlanta, a little closer than New England and the west coast ;-) -Hoyler
Thanks Hoyler. I saw on their website that they now have an Atlanta office. I think I will speak with them about their remote options for now and then look at their Atlanta office when I'm able to move. Kirk
Kirk, I assume they are charging 2 cents per share; as opposed to $20 for all trades. In this market it will be very difficult for you to cover your expenses. If you use INCA to enter and exit your breakeven point will be nearly 6 cents. A few years ago firms could get away with charging high tickets but in this market a 6 cent move is halfway decent. I would say that 40% of my trades are break evens. If I would take into account that every break even would result in a $40 to $60 loss I would probably never have an up day. I won't say that no one can be profitable on that comm. schedule; someone who position trades might get by on it. I just can't see how they justify charging those rates.
Mugshot, Unfortunately its not a per share fee, just a straight $20. Very prohibitive for small shares or scaling in and out of positions. Thanks for your insight, the breakeven trades would definitely hurt. I just spoke with Rob Keller from Echotrade and he was extremely helpful and professional. I would encourage any traders thinking of going prop and need remote capabilities to call them. Thanks to Tharp for recommending them. Thanks to everyone for their help. Kirk