Prop Commission vs IB's

Discussion in 'Prop Firms' started by qll, Feb 23, 2007.

  1. qll


    Prop Commission vs IB's
    IB's is 0.5c per share. How about Prop's?

    How much is desk fee?

    I want to do a comparison in fees based on my volume and style between prop and retail.
  2. Keep in mind that IB's .5 is an all in rate, that includes ecn, sec, nasd fees, etc. You want to compare their unbundled rate to prop rates, as you won't get an all in at a prop firm (not a good one anyway).
  3. if you take liquidity on nasdaq stocks all day long you'd have to be at .001 or less prop to beat ib's all in. if you trade goog or rimm and do all markets ib's losing money as the sec fee is about .005 per share alone. if you mostly do nyse ib's .005 rate is not good
  4. qll


    sec fee is 0.005 per share?
    i know discount brokers like scottrade or ameritrade, will only charge $10 or less. i know they may cheat on market or active orders, but if you provide liquidity by using passive limit orders, your orders will be shown to the level2 book pretty quickly, so there is nothing to lose from our end, then you mean ameritrade, IB, scott are all losing money to provide us a service?
  5. I thought the SEC fee was 0.0000307 per dollar of sales proceeds

    Unless you are talking about a different SEC fee
  6. IB's rates are very competitive with a typical prop firm. Plus you have the flexibility of choosing their bundled or unbundled rate based on your trading style. There is no desk fee at IB.

    How do the mainstream retail brokers make money on a $10/trade commission when you are using "passive limit orders"? Easy:
    1) they keep the ECN rebate you just generated
    2) you need to average 2000 shares/trade to beat IB's bundled rate. Most people don't do that size on average, even high volume traders. Every time you trade less than 2000 shares at those places you are giving them a bonus.
  7. zdreg


    sec fee is correct
    $30.07 per million dollars, $3.07 - per hundred thousand
  8. Do you pay for datafeeds on IB? Do they offer a Dow Jones newswire?
  9. 100 shares of goog is near 50k. so the sec fee is around $1.50 per 100 shares. so on a roundtrip ticket thats .0075 per share plus the .003 a prop house charges you and taking liquidity so thats another .003. so if you bang market naz on goog or rimm you're well over .001. even an aapl adds over .001 per share in sec fee's so not paying sec and liquidity is big. on the other side for true scalpers doing 50-100k shares a day ib's system is cumbersome as heck to use
  10. qll


    can i conclude this? if i only need cheap commissions, i should not go prop? an easy way for cheap leverage is via 0% balance transfer from credit cards, although i only have $200K, then plus overnight margin, i can get $400k.

    by the way, what margin interest rate does prop shop charge?

    i am look for more capital, hopefully, a riskfree model like swifttrade, but i hate their no overnight policy. 95% of my profit is from position trades.
    #10     Feb 25, 2007