Trading Bureux business model

Discussion in 'Financial Futures' started by mgrund, Mar 6, 2012.

  1. mgrund


    I want to make a point to all that read this thread that typical prop trading arcades without naming any names have had their day, most experienced intraday traders have drastically cut down their daily trading volumes and so the need for very competetive round turns is just not there anymore, putting 10k sterling or so down, paying 2500 pounds per month desk fees giving away a 20/30 % split in order to gain cheaper commissions and get 4 :1 leverage
    is ridiculous , there are many FCM´s that give 4:1 leverage take no split and charge
    a fraction more for round turns and give you x trader and such at cost price again not naming any names! unlike the mark ups for desk fees and equipment the arcades get away with, net net your better off with an FCM than an arcade that is if you are experienced and not looking for a grad spot, most of my fellow friends and traders who have been around the markets for the last 15 or so years have gone from trading spreads in large clips in stirs and fixed income 200 -1000 lot clips are now trading different time frames and more like 5 - 50 lot clips depending on contract ,so if your doing less than 10,000 lots/sides per month which many are .I personally have gone from 50,000 lots per month to sometimes 5000 a month. Iam at an FCM, and there is no comparison , the customer service is superior in every aspect, I can draw on my profits instantly without having to chase the governor round the room for 2 weeks to get my profits they treat me with total respect and I get the same leverage that I would in an arcade with any platform I want at cost price and give no split on my profits, why on earth would you want to be at an arcade when there are so many better options, final bit of food for thought most arcades are trying to diversify into broking and such as their traders are not doing the kind of volume they did in the heyday 1999-2007 and it is nigh on impossible to get a backed deal ,whilst 6 years ago more or less anyone could have got a deal, basically people dont be lazy or stubborn have a look and shop around , you´ll be surprised for the kind of trading you are doing arcades are as useful as tits on a bull your wasting money, there are other options.( NB I will not slate any firms in name or promote anyones services so dont ask me to)
  2. TsunTzu


    Boy thats one hell of an axe you have to grind. I am wondering if your the ghost of 'newtricks'

    You have way to much time on your hands now you have changed your trading method to the latest zeitgeist.

    Can we look forward to daily or weekly posts asking where the volume has gone, professing that the arcade model is dead and that you are now trading differently?

    I feel your frustration with things but the market doesn't owe us a living.

    I hope you can find another more satisfying route to satiate your irritations, you seem like a man on the edge.

    Bonne chance
  3. mgrund


    I have no frustrations at all.

    The only frustrations I have is that is deeply boring intraday trading now I am position trading as opposed to being active(now looking for 8+ ticks).So yes you are correct I do have alot of spare time during working hours.

    Whats that got to do with the outdated Trading Arcade business model?

    The Trading Arcade business model was based on Locals doing lots of spins a day ( actively scalping ), but as we all know, due to changing of the markets, locals now trade a different longer timeframe.

    I wish the model was not dead, as I would still be scalping the EUREX if it was not as opposed to maybe 5 trades a day looking on a longer timeframe and hence no need to pay for the Desk fee anymore.