I saw someone mention something about a TRADERS UNION, using strength of numbers to negotiate better deals with trading firms. Its really not a bad idea, what firm wouldn't bend over backwards to get the volume business of 1000 active traders. Lets do this! All this idea is is the age old business model of wholesale rates for bulk customers.
At first glance this idea sounds appealing. Problem is, there's a LOT more to consider when choosing a broker than price. Poor software, hardware, communications infrastructure, continuing education and service can cost you way more than what you may save in commissions. Brokers with proprietary advantages (software, trading strategies, other technology, etc.) that are worth more than the .001-.002 in cost savings you may get, will be unwilling to negotiate. And why should they? Who wants low margin business that bad besides desperate firms or firms without the ability to service their members properly? With respect to brokers, two years ago this wouldn't have applied. But in today's competitive market it does: You get what you pay for.
Colin West is trying a first step at something like this at the traders2traders.com website. A volume discount program for trader stuff (data, software, etc). http://www.traders2traders.com/store/default.asp
You could not have said it better. An Example: Choice A: You make 5000 a month NET trading with Broker ABC because of a cheaper rate, but you have virtually no training or support. It is all up to you. Choice B: You make 10,000 a month NET trading with Broker XYZ BUT PAY A HIGHER RATE because Broker XYZ helps train you and shows different trading strategies and gives good support. Which choice? The trick is finding Broker XYZ........so do some due diligence and talk to "traders" where you are considering to go. If a Manager is hesitant, WALK.
There's already a bunch of firms offering low rates. I'd rather find a firm with a great order entry system that doesn't cost me $200 a day due to outages or slowness.
all good and well. it isn't just about price. some firms just treat traders, shall we say, with less dignity than they might if they didn't have the "no trader is bigger than us" mentality. Some firms, no matter how good you are, just smell like fish. Beyond that, even a bsd can only do so much by himself. Also, there might be benefits in subscribing to research that costs too much for one person; the benefits of having like minded people to collaborate with, etc. Maybe it would be better if all these traders got together and just set up their own shop, did their own business, didn't solicit outside business. I dunno, just shooting from the hip. It's the old 'make/buy' thing. The biz is definitely changing. Nothing wrong with exploring different approaches.