Hi guys, I'm running a small fund with family and friend's money and we have about $1million. I want to look into designing systems to trade markets other than the ones which IB offer. My understanding is that the big IBs like GS, MS, JPM, CS, UBS, etc, all have electronic trading platforms designed mainly for funds/institutions. About such platforms I have a couple of questions. 1/ What would it take for me to open an account so I can trade my algos through these guys? Would they consider $1m - is it worth giving them a call? Or do I need double digits first. 2/ What programming language do these platforms normally use? Which software do they integrate with? Or is development and execution all in the one package? 3/ What sort of leverage do these guys offer? I'm guessing probably more than the 4:1 than IB does. And yes I'm aware that leverage cuts both ways, etc. Does anyone here trade or run a fund that executes their algos through these guys? Any thoughts/comments would be appreciated. Feel free to PM. Cheers.
Hi there I'm not sure that seeking higher level of leverage would be any reason to move from IB. The larger brokerages will charge you more commissions and likely request *more* in margin... That's their business model. Their value-add is a better trading desk, credibility with investors, global reach, etc. Goldman won't open an account for you at $1 mm, but you can go thru a mini-prime. Mini-primes will handle your support needs while still clearing at firms like GS. Again, I found their rates sucked and support questionable.
For that kind of trading, go to the solution provider first. Lime, TT, Rithmic... Not clear about Lime, but the others clear many different brokers.
You'll need 30-50x your AUM to talk to GS directly. Merlin intros to GS and JPM: http://merlinsecurities.com/. There are tons of algo-shops that will work with the BDs of your choice. What heech stated. You're not going to see better than 4x unless you're gaining access to equity swaps. Again, your AUM will need to see quite a boost and the EQ swap market isn't open to algos.
Many places offer portfolio margin for a $1M account, generally giving margin significantly better than 4:1. Most offer multiple platforms, and most offer FIX or some variant, which is more or less cross broker/platform.
THanks for all the replies so far guys. heech - Rithmic looks the goods. Offer a nice mix of exchanges like Russia and Brazil, etc.