lol, anybody only putting up 5000 with that type of overhead cost and that leverage has almost no way of succeeding. Bring em in and churn them...it like a revolving door lol I bet he could get a much better deal as well, regardless of his situation. I know of some here in Chicago.
options are traded in a cash account. call/put contracts . not prop related For stock commissions .003 is a competitive rate for prop firms
Totally agree. 5k for options? Come on now. 25-50k should be the minimum. I don't know why these firms open these accounts. I've seen some WTS subgroups opening accounts for $1500, which to me seems like a waste of time to invest all the education and s56 training, not to mention the risk-management costs associated with that. .005 per share is a good rate . Once you start doing 500k+ shares per month should you be looking for lower rates. The good firms don't whore out their rates because they have real overhead like customer service, risk management, sales people, rent, fiber internet, equipment, etc. etc. lots of overhead costs
the guy never said how much volume he does ? .005 rate is not a good rate to someone that pays .002 wts offers .002 rates all day long for active traders some wts groups offer fair deals. some people don't know any better
hitnrun, 500k seems like active trader volume, maybe a little under but it's hard to find a good deal when you do under 300-400k. .005 is a good price if you are depositing under 10k. I've called dozens of firms. Generally, the ones that except under 5k either sell it as training or have .007 .008. I've ever heard of .01 at places like SMB and T3. If you are doing 250k shares or less, .004 - .005 is a fair rate, IMO
Why would this firm ask for finger prints? Do all prop firms have this requirement? I had to do this for my current position at my company, but I had no idea it would be needed for trading.
Idk what firms you are calling but this is not my experience! OP you should ask around a bit more. When I first started at my firm, I got charged .004/share and when I went to other firms they offered better. In fact, they told me I was getting ripped off! Depends on what the training is like as well, most of these types of firms don't offer any substantial training. The model just doesn't provide any incentive for it. If you trade 500,000 shares/month with .005/share you are paying 500 dollars/month in commissions alone. Does not count any desk fees or the like! That's a very hard way to make money when every month you are giving 10%+ of your account away on commissions alone! What are your goals and what are you trying to accomplish?