To all the retail traders here, why woulld you not try to go remote prop? Assume no minimum deposit, a decent split, reliable software and service. I see a few firms such as Bright and Schony offer remote, but it's not very popular...if someone nets about 150K a year retail, why wouldn't they go prop to increase their net through increased buying power? zippie
Off the top of my head: lower commissions at non-prop broker SIPC insurance no series 7 and other regulatory requirements
SIPC is not really necessary if you are not using your own capital, and I don't think a series 7 is a huge requirement. Lower commissions I can see, but if you are paying, like 8 bucks a thousand but gaining much in the way of leverage I think you could easily make up the difference. Thanks for the reply. Zippie
At a minimum, you have at risk the capital that you've made during the month, and that assumes you didn't have to pur down money or build a capital account.
Just curious, which retail brokers will give you lower comissions than an average prop firm where you're doing decent volume? -- http://themarkettruth.blogspot.com/
I agree, but if you deal with a large firm like Schony I don't think you need to worry about default.
Do it if you like it. Why as why other people don't do it? Just do it yourself and don't worry about where other people trade.
With per share pricing, I see 0.006, with per trade I see $10 for 5000 and 0.003 after that (so 0.002-0.003). Honestly, any prop trader paying more than like 0.005 at this point (unless he's getting some real nice fringe benefits) is being ripped off and they know it. I still don't see why a profitable trader would go retail except for the SIPC insurance - but at what cost? -- http://themarkettruth.blogspot.com/