What is consider a good deal?

Discussion in 'Prop Firms' started by traderyin, Nov 22, 2006.

  1. Ok, I've read alot of thread about firms providing $4 ticket and 100% payout.

    I want to know which firms provide these kind of deals? Do they charge any desk fees? How many shares you have to write to qualify? and How much you have to put down and how much leverage you get? and how reliable are some of these firms?

    If you not comfortable discussing in open forum, please PM me. Thanks.
  2. see my PM
  3. I'm curious too...I'm pay $5 (plus ECN fees, Nasdaq and Securities taxes) per thousand shares w/ a 70% payout..is this fair?

    I'm also using 100% of their capital.
  4. That sound fair to me when you put $0 down. But its the firm reliable? Were they in the business for at least 5-10 years prior?

    Because alot of firm can give you amazing deal, but they can easily go under in a month or two and you never get to see your money.

    There's a premium to pay for relaibility.
  5. $4/1000 is not that uncommon if you are a moderately active trader, I'd say at least 500k - 1M shrs/ month. As you alluded though, there can be charges on top of that. Desk/software fees, marked up ecn rates, crazy haircut charges. Also consider the software you'll be trading on. How stable is it, how fast is it? Missed fills because of software issues can make a big difference on your bottom line.

    Really, no one should be pushing particular strategies or volume minimums on you. The reputable firms want you to become a good trader who'll stick around a long time, not someone who will just churn their account away.

    If you don't put up any money, that makes a big difference. That model is not nearly as common and is probably going to involve a profit split and high rates. Leverage ain't free and you'll pay a premium for taking none of the risk.

    As for reputation, it counts for a lot. This site is a great resource for checking out your options and finding out who's trustworthy and who to avoid.