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Opening a Shop

  1. I've got some money to lay down for a startup (affiliate/franchise?). I wanna piggyback with an established firm and I'm looking for a turnkey outfit. I'll supply the office, equipment, management. They supply everything else.

    Who's reputable and good at it?
    Leaning towards Echo or Swifttrade.
     
  2. if you are looking for a turnkey operation you may want to look at World Trade and Title Trading as well
     
  3. Who is going to supply the traders?
     
  4. Giant difference between Echo and Swiftrade..? Iw have a couple different models for our affiliated groups....PM me if you like, let me know some more details.

    Don
     
  5. I have a small group (about 4-5) ready and willing. Probably have to advertise for more.
     
  6. Probably?

    You will have to advertise, with cheesy craigslists ads and "job" postings on career sites. You will also need to have your current guys try to recruit others and give them a piece of the override.

    Are you a trader yourself? If you are, why are you not talking to your own firm. If you are not, that is a BIG negative.

    Why exactly do you want to invest in something like this?
     
  7. Don, can you be more specific between Echo & Swift.
    You can air it out here, or PM.
     
  8. Retail trader for years. No firm, just brokers.

    There are many reasons why I want to do this. Number one of which, that there is nothing for traders here. Must be something to do with the time zone... not everyone likes a 3:30 am opening bell... :mad:
    However, you do have the rest of the day after the close. :D
     
  9. You must be hanging ten in Hawaii? I think this is best time zone around.... I am West Coast and love the 1PM close but would love 11 AM better.
     
  10. Yes.

    I'll be honest, it's tough adjusting. Your deepest sleep happens around the time you have to wake up. It took me years and you have to be very disciplined in keeping your bedtime hours consistent... but the payoff is wonderful. I love early mornings just as the sun is about to come up. And if you make your nut early, you can catch a mid-morning surf. Groms are in school and punks usually don't hit the line-up 'till afternoon.
    Nothing else like it.
     
  11. Quick summary..

    Swift, co-owned by my friend Charles Kim and Peter Berg has a special arrangement with a clearing firm to have a single price "ticket charge" for each symbol they trade (basically). They have traders who are taught to trade for liqudiity rebates (primarily)...traders learn to play a very quick "video game." Traders keep a small percentage of the net profits. I just had 2 traders from there here for 2 weeks in boot camp, still pretty much the same deal.

    Echo (formed similarly to Bright).... traders are licensed professionals who put up capital and keep their profits.

    You might enjoy this:

    http://www.traders.com/Documentation/FEEDbk_docs/2009/10/close.html



    FWIW,

    Don
     
  12. Thanks for the info Don.

    So basically it's a difference in business models when it comes down to Swift and Echo? Under the standards according to your article which I read, Echo would fall under the "Professional Trading Firms Category" and Swift would fall under, although rather unclear, "Retail type trading groups". Am I reading this correctly?

    As far as I'm concerned, determining which model to go with is completely controlled by your market demographics and resources, of which will provide you the most reasonable amount of success, ie; profits. Whether one thinks one type of trading firm is more "honorable" (for lack of a better word) than the other is regardless imo. Integrity comes from the owner/management and can be applied to all models. And also, there's nothing that states you can't start one way, then morph into another.

    The above paragraph isn't necessarily meant for you, just my thoughts on the subject. You've done well in your business and I commend you for that, as I'm a business owner myself (contractor) and know how challenging it can be. I'm just doing some DD to find a firm that will "fit" my market, and help more than hinder.

    Cheers.




     
  13. On a side note, I'm getting a lot of PM's from fresh registered members referring me to other groups. But the more well named firms (other than Bright) have been conspicuously quiet. Hmmm... that might be telling me something.
     
  14. They batch multiple trades by many traders into one order, hence why they able to offer such low commissions and still make a killing on overrides. HLV used to do the same until Penson said "no more".