Wait a minute....There are firms out there that charges 1/10 (0.001) of a penny per share? And did I read that right about ZONE? 1/20th of a penny (0.0005) per share????? I have never heard of such rates anywhere. That would add practically $500G to my account per year!! Are these people serious? And how much of payout do you get with these rates? And how much do you have to put up to trade there? And are the rates the same for listed stocks?
NYC, you're a man after my own heart...at least on this issue. .001 is what is considered 'pass through' access to the NYSE (thru ISI, for example). So, I don't know how you're gonna get to pay that only and not anything to your broker on top of that... I keep thinking that if enough traders get together and approach the right people though it can be done...
Provide Atmosphere! The NYC office of Onsite used to do this. They kept the brother-in-law around, who kept crapping about losing $15 - $30 on a trade. They also kept his friend around, who traded his dad's money, but never made money himself. I guess it was worse than having a vacant office when prospective new traders came in. At least seeing someone there made them seem active. Shitty operation all around!
Clearing Costs Before I set up my prop group I priced the this cost of doing business and a few of the costs seem on target. I'm curious how he milked the info from the clearing house with out BD representation. Animal House, I haven't seen that for years. I guess I have to get netflix.com so I can rent it!
I notice that the ad reads "$1 executions, 1-10,000 shares" So is that the same as $1.00 per trade for the full size of your order, or will you have to pay $1.00 for each partial execution, which could certainly add up to much more than one-tenth of a penny per share. For example, if I place an order for 10,000 shares and I am executed in, say, ten lots of 1000, do I pay $1.00 or $10.00?
Not all is bad with props, but ultimately you probably are better off in retail because you ARE risking your own money in prop firms (whether you put money down or whether you eventually make money which the prop turns into money at-risk) and the commissions are much higher (while you only get so much % of the payout), often for a lesser product (quote/execution systems, filters, etc). Not only that, but you have to worry about whether your money is safe with these prop firms (firms go out of business almost every day it seems), as one's trading capital is mixed in as part of the firm's assets. Prop can seem better in some short term scenarios, but overall retail is the way to go!