What is a potential trader lead worth to a broker?

Discussion in 'Trading' started by short&naked, Aug 9, 2012.

  1. I am working on a web app to aggregate broker contacts and would like to know about the going market rate for potential trader leads.

    Perhaps some broker representatives could chime in (or PM)
     
  2. 1245

    1245

    Be more specific as to what your offering. Maybe some examples.
     
  3. There are a lot of potential traders.
     
  4. 1245

    1245

    Not all traders are good leads. As the broker, you are looking for active traders that are willing to pay a premium for services provided. Low volume traders looking for the cheapest price and full service, are not good leads.
     
  5. Exactly. For example what would a general trader contact be worth vs. one with more specific info (i.e. trade frequency, trader equity, experience, etc.)
     
  6. 1245

    1245

    If the trader stays for 12 months or more, about 1 month expected profit. 1/3 after the trader starts, 1/3 after 6 months and the balance in the 12th month. It can't be a commission. It needs to be a flat rate that estimates what's fair.