Just thinking that it would be great to trade with a few other experienced traders. What would it take to start a small room? Is there a business plan for this or are all setups customized? In order to be competitive with other trade rooms and attract good traders: What data sources would be needed/expected? What type internet connection; is dsl OK What structure of business? All share in cost or should I provide everything? What do traders normally bring to a room in the way of hardware, ie. do I supply computers, office equipment? I now work alone and think it would be great to create a place to work with others....Is this something that I could either make a little money on or at least break even?
If you're going to start a trading room, no professional/experienced guys will join you if you're using and internet/dsl line. You have to step up. A T-1 these days are cheap.
High-speed Cable with DSL for back-up would be good enough. Even with a T-1 connection, I think you should get DSL/Cable for backup purposes.
From my experience, 2 or 3 traders using charting, analytics and level II's can take up some serious bandwidth when the market is active. A T-1, depending on where you are, might only cost $600/mo. If your idea of a small group is 5, that's only $120/mo/trader. My advice is not to save money on bandwidth if you are serious. If you do 10 trades a day, than dsl/cable will cut it. Ten seconds of downtime or a data line being bogged down temporarily can cost you thousands of dollars. It depends how serious you are. My two cents.
Thanks for the feedback. I searched on Google but did not find anything. I feel that there has to be others doing something like this. Just want to pay the rent and utilities not make money on fellow traders. I had thought about 1000 sq. ft and 5-6 traders seem right to me. Any idea if there are any old post on this board discussing this topic?
Business side is much different than trading side. The market is much more competitive. Use a P/L model over a Commission Model. Good luck.
With the bust of the market and economy since 9-11, you can find Former TRADING rooms with the lines and in some cases, the EQUIPMENT still in the office....I saw one space last year that still had DELLs, T1 lines , a server rack and office furniture....all you had to do was drop the deposit and hook up to the internet....A lot of firms went under and were locked out by their landlords with the equipment still there....Houston and the S. Florida are are two I know of...check it out with a office agent