You can still get ECN rebates, you realize that right? 20 cents per 1000 is virtually impossible to beat, if you need comissions less than that then you need to learn how to trade. Most prop firms charge .0015 to .005 per share, .0002 is fantastic. Stop trying to start a pissing contest or post where u can get rates cheaper than that
Why should a broker care, they are not in the game to lose money, I don't care if you have a seat on the CME and trade 500RT/day or trade 2500 shares of SPY a day, there is a cost of doing business that always needs to factored in to your business plan. Did I say business plan, I forgot most mooks here are either trading on a demo or have a $2500 IB account....ooops sorry poor choice of words! Are you a MOOK?
You also realize by the time you get filled on those ECNs the level breaks right? ARCA/BATS is always the last routes to get filled.. My firm does not charge me anything but the ECN fee, SEC fee, and NYSE FEE BUT the payout is <70%. So in-all I'm not sure which one I'd rather have. If I worked at your company and traded 150k shares, I would make $400/day. Of that, $150 would be in fees, and then 30% of 250$ goes to the company so I make 160$ At my company I would make 87.5$. So your company is better, ASSUMING you use EDGA. If I received ECN rebates which I don't because they never get filled I would make $387.50/day after all feees. Unforunately I live in the real world, and if you are seriously getting 100s of dollars of rebates a day, let me know what stock+routes you are using You have a good deal. Go and make some $$!
Dude, how you get filled on ECNs is irrelevant, the same applies regardless with whom you trade, and all other fees apply the same regardless- sec, nyse etc. 20 CENTS per thousand shares commission is as as cheap as it gets. You're paying 800 bucks commissions for doing 2 million shares a month, and that isn't a whole lot. For the same 2 million shares at .0015 which is cheap as well, you're looking at 3k a month, quite a difference. Where do you trade for free btw?
So... Since this pissing contest started about getting ripped for .0002/shr trading one's own money, are you telling us that the firm where you trade YOUR money is only charging these three mandatory fees? No commissions? Nothing for them? Magnanimous trading firm? Robin Hood of Water Street? Broad St hooker with a heart of gold? Unless you are trading firm money only...
Ok let's get back to the beginning. A) Is this guy paying 20 cents/1000 for every trade he does to the company or B) is the 20cents/1000 include the clearance,sec fees? They make 0 money on what I trade. I trade the FIRM's money, but the payout is WAY less than 70%.
20 cents is prob just the clearing fee. Regardless, that business model is not viable unless the firm gets a cut, no one makes money by charging 20 cents per thousand, get real...
That's why I want to know if he's a scalper. If your a prop firm and you have 50 scalpers who trade 200k shares everyday the firm could potentially earn $2,000 in commissions alone/day. Over a trading year, that's $500,000+ in commissions. It's really NOT a bad deal. His payout is HIGH. All the best of luck to him.
That's the difference. Your firm does not pass thru a commish because they are taking part of the back end. Willing to bet too that your firm is a licensed b/d as well, ala FNYS. Back to the OP, he's looking for a deposit firm with greater than 70% payout. Your points to the discussion are akin to apples and oranges as they are 2 totally different business models. For a deposit firm, .0002 is a dirt cheap rate. Of course, this is on Sterling, so you do have your trade-offs. BTW, 500k a yr in firm commission revenue is nothing. Tuco was doing in excess of 1MM/month.