US Trading Capital

Discussion in 'Retail Brokers' started by FaderTrader, Dec 29, 2005.

  1. Seems to be that US Trading Capital is trying to address the issue of traders who want BP, but who feel uncomfortable giving thier money to a random LLC (prop shop, arcade). In that regard, it's reasonable.

    What is not reasonable is the 20k requirement. Bright Trading requires that kind of "buy-in", but they also give you at least 1 million in BP. Call Don, he'll tell you that.

    If US Trading Capital wants to lower the buy-in and increase the leverage, then it seems to me the only pitch would be safety of funds, in which case, I don't see why every prop trader in America wouldn't switch to them.

    I'm perplexed as to why they are requiring such a high contribution while offering so little leverage on a comp basis.

    Again: It would be fairly easy to capture the entire prop trading industry by offering a low cap contribution and high leverage - just combine that with safety of funds. I suppose the only issue is logistics - how do you measure individual trader risk in real-time. Easy: cut them off when their balance goes negative.

    US Trading Capital: Do you have any plans to improve your model to attract more prop traders? Expanding your base of traders would become self-fulfilling and would convince traders, like me, who want to be independent, but who prefer a lower upfront capital contribution with a REPUTABLE firm.

    At the very least, you need to recognize the unattractiveness of low leverage and a .008/share commish. Completely uncompetitive.
     
    #31     Mar 23, 2006
  2. USTrading

    USTrading US Trading Capital

    Thanks FaderTrader for your comments. You are absolutely right, we are not competitive as far as proprietary traders are concern but we are offering our service to retail traders only. Retail traders don’t have a lot of options to increase buying power (except putting more money into account) and that’s where we are trying to help. We give retail guys our capital to double their buying power with the same commissions rate and sometimes even lower.

    Adam
     
    #32     Apr 10, 2006