Really? I was under the impression (wrongly, by my former firm) that $3 per 1000 and a 55/45 P&L split was decent. How wrong is this? What kind of fee + profit split is a good one given that there is no training or real technology. Which firms offer $2 per 1000?
That's one of the worse deals I've ever seen. Please out the firm so people can stay away. OP's deal is pretty standard nothing wrong with it but as mentioned he could probably get it down to $2/1k
Of course the cost of doing business is very important. However, doing business with people you trust has value too. I'd rather pay a little more and feel the money will be available when I want it. I would also not want to register with a firm that will have violations that might effect me and my business in the future.
So wait, why do some firms in NYC like FNY get to charge $6 per 1000 shares with a 50/50 profit split or Quad get away with charging fees of $8 per 1000 shares and get a 50/50 profit share. How do firms like that even get traders to join? The support, training, trading team can't be worth that much can it? How can fees/split be so big in firms like that and so low in others? What firms out there allow a $3 fees all inclusive deal with no profit split? I am currently at a firm that charges $4 per 1000 and I keep 75% of profits with no cap contribution. I was under the impression that that was decent... is it not? What firm charges $2 fees in NYC with 90% profit share? I thought the max profit share was like 90%?
Sigh your comparing apples to oranges. If your at a non cap contribution firm then its a great deal. We're talking about prop firms with cap contribution. WTS, and Echo will get you to $2/1k if you do enough volume.
$2 per 1000 might be stretching it a bit with OPs numbers, but $3 per 1000 is the norm. I know traders paying $2/1000 with less volume but that might be a special deal. For $3/1000 you should be getting 99-100% payout with no formal training - although support should be quick to answer trading related questions i.e platform or routing.
Right. $3/1000 is about the norm for a newer trader. I trade with JC Trading Group and started at $3/1000 when I began as a trader. I do more volume now so they lowered my rate a little. One thing to consider as well is the money spent on ECNs. JC Trading has a route that is only $1/1000 to TAKE liquidity (Yes, I said TAKE!), and the fills are phenomenal. Since I take liquidity most of the time, I am saving $2/1000 over ARCA or NSDQ!