Prop trading fees

Discussion in 'Prop Firms' started by calhawk01, Sep 10, 2014.

  1. Hi can someone tell me what these fees are for:

    ECN FEE= I get this one

    CLR= why am i paying 1$ per trade on this.

    SEC= about 10 cents per 100 shares

    TAF= couple of cents per 100 shares

    NSCC= couple of cents per 100 shares
     
  2. arna

    arna

    CLR - clearing fee - commission for company/broker. Could be lower.. but anyway - trading is not for free :)
     
  3. CLR is clearing, as arna said. Its the commission the broker/firm you trade for charges. I pay $0.0035/share. $1/trade is pretty expensive for a prop firm.

    SEC is the Security and Exchange Commission. It's $22.10/$1MM traded. If you want to know why they charge fees, read the Section 31 of the Securities Exchange Act of 1934.

    TAF is the Trading Activity Fee by the FINRA. It should be $0.000119/share but no more than $5.95 per transaction.

    NSCC is your clearing fee. It's the commission the clearing firm charges. NSCC stands for National Securities Clearing Corporation. It's a reputable clearing firm. I believe OptionsHouse clears through them and they are a respectable broker. I clear through Merrill Lynch.

    All of these are normal fees.
     
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