Discussion in 'Prop Firms' started by DraXon, Sep 11, 2002.

  1. DraXon


    What do you guys think about this offer by Questrade? Is it reasonable enough to join?

    Prop Traders Terms:

    Share Rates (All rates are retroactive and calculated on the day).

    < 250,000 shares = $0.0013

    250,000 - 750,000 = $0.0010

    > 750,000 = $0.0007

    Charged at $25.00

    ECN Rates
    Full liquidity credits provided. Ask for schedule.

    Trader share of profit

    Guaranteed Minimum
    Trader is charged a minimum per share commission of $130 for each day traded (ie. 100,000 shares X $0.0013)

    Admin fee
    Trader is charged a $5 administration fee for each day traded.

    Entitlement/Seat fee

    Trader will pay $150 if he/she trades less than 10 days in a calendar month

    Trader will pay $500 if he/she trades less than 15 days in a calendar month

    Entitlement cancellation
    Staff must be informed of an Entitlement cancellation 5 days before the end of the month, or the fee will be charged

    Minimum Deposit
    $10,000 must be provided in the form of a SUBORDINATED LOAN jointly signed with IDA. Trader must provide employment and trading history.

    Consulting Agreement
    Trader must sign consulting agreement. Trader is responsible for invoicing Questrade and paying GST on all profits made.

    Overnight positions
    Trader agrees not to hold overnight positions.
  2. bigscalper

    bigscalper Guest

    expensive for that model,

    $25 per stock/side/day is really expensive, nobody else charges this

    Sub loan is dangerous

    Why would you pay GST? There goes your tax benefits

    $5 admin fee, a little petty, NO?

    I would recomment you go to firm and ask to speak to some of their profitable traders and see how much $$$ they are making under this arrangement. My guess would be not much.
  3. DraXon


    In other words, our options are extremely limited here in Toronto, Canada.

    I guess there isn't really a place for us to trade afterall. :mad:

    Does anybody here have any recommendations aside from Swift Trade and Questrade? IB seems to be the most logical start for remote traders, however, I think I would enjoy an environment where traders can interact with each other as opposed to trading at home and feeling isolated from the outside world.
  4. the per share rates are very high from 250,000 shares per day and up. if you are doing that kind of volume (especially over 500,000 shares), you'll be paying for their house in the hamptons inside of 12 months...

    also, there's a lot of bs fees as mentioned above
  5. machine


    I'd say it looks like a better deal than Swifttrade's. Of course you don't have to put any money at Swift and pay comissions there but you get only 30%. And as we all know, if you don't make 5K a month you get nothing.
    Now, at Quest you pay $1 per 1000 shares if you trade more than 250K shares. So, even 1 cent trade will pe profitable (if you don't hit Brut or Trac, of course). Trade 500K, make a 1K gross, pay $500 comissions or less if you bid and offer on slow stocks, you get $500+ less all those BS fees. It's not too bad, you know. To make a $1000 on 500K shares is a piece of cake. Even monkey could do that. It's not a real trading, of course, but nowadays it is some sort of a standard, eh?
    The question is how relyable their system is and how fast they can get you out in case of the system failure. And what doe this sub. loan mean? What margin they give?
    Talk to traders there, ask them if they're happy. And bargain if you're not a total newbe. I know, they can give a better deal if they'll see you can make them money.
  6. I don't know how it works since you are in Canada but wouldn't it be better to talk to some US firms and trade remote with them. I am assuming that they could do this because I have heard remote traders in other countries. What real advantages are you getting with going with this firm seeing as you are risking your own money anyway? If you are looking for leverage on your money you get always get your licenses and go with a Bright or an Echo. You could also find a sub-llc to trade from thru the non-pro firms. I have friends who run different LLC groups with different companies if you were interested. Like I said earlier though it depends on if they could do remote in another country. You can PM for that info on the sub-llc's if you were interested.
  7. machine


    I know we've got Bright here in Canada but with their $200/mo desk fee and 0.1 comission rate and REDI software I don't know who would go to trade with them:confused: I suppose they survive only because of that stupid SEC daytrading rule.

    Quest deal is a real bargain compared to Bright. And as I can understand Bright is one of the major US prop. firms.
    Also I contacted one of the ECHO reps and he said they didn't deal with Canadians.

    But I would really appreciate if you could PM me your suggestions.
    Thanks in advance.
  8. Canadians are 'technically' not allowed to open trading accounts with U.S. dealers! There is an agreement between the SEC and the IDA ( Canadian Investment Dealers Assoc.) that prohibits U.S. broker/dealers from opening accounts for Canadian residents. It is legal bullshit and just another example of the big canadian banks/brokers exercising monopolistic powers but alas, that is just the great Canadian way. There are of course ways around this obstacle, but quite frankly, it's not worth it.

    Depending on the type of trading that one does the Questrade deal is pretty good! Especially compared to a firm like Bright (not to single them out but they have been mentioned already). Who offers commissions of less than 1 per thousand shares? Thats .001 cents per share, less than taking liquidity from any ECN. On top of that they are providing full liquidity rebates. Call me crazy but If you trade any kind of volume how can you beat this? I have yet to see a better rate. About the only downside I see (on the cost side ) is the clearing fee. Prevents you from jumping around and trading a dozen stocks a day, but if you only focus on one or two stocks a day seems pretty marginal.

    If there are better deals out there for traders who trade good daily volume and limit their trading to only a couple of stocks per day I haven't seen them. Let's hear about them (and hopefully the thread doesn't get shutdown)!

  9. bigscalper

    bigscalper Guest

    Just asked a friend in Toronto. Apparently, nobody at Quest makes good money. But, check this out for yourself if you are serious about evaluately this firm.
  10. Bigs,

    Have you got any suggestions on firms that might offer a better deal? How about your friend in T.O., does he trade at Questrade or have some kind of inside info. ?

    #10     Sep 12, 2002