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I'm a little hesitant to add to this thread as it seems to be getting hot blooded. But in my experience, which amounts to 10 years being a "local" (self backed prop trader) having worked with probably over 50 traders that regularly make over $1 million a year and countless other long term...

Interesting article thanks. Although, there didn't seem to be a 'control' group where there was no HFT providing liquidity for the initial part of the transaction. If there were no HFT's the initial institutional order may have to pay a lot more on their first tranche in wide spread/less...

I think thats pretty fair to be honest. Even with an extra 5 cents added to my RT my roundturns are still WAAAAAY lower than what I would be paying if I went direct through an FCM. If my firm does 200k roundturns in my market the exchange gives me the group discount plus their 5 cents. Its still...

Agreed. Pleasure, good to have a debate with someone that speaks from experience... not always the case in Internet World

I think we may be talking on crossed wires as I wasn't specifically talking about IBanks. I am talking about the trading industry as a whole. I come from a prop/fund background where everything is done for profit. I feel sorry for you guys at banks. The sooner you guys are allowed to prop trade...

I actually specifically used the phrase "no speculator is obligated to stand in front of a crashing market and buy it" I did not say market maker. I have worked on market making desks and totally agree with you that as soon as a sustained move is in place they run for the hills. Most market...

I said "trading floor" not trading pit, mate. I've been a professional trader for my entire working life and can assure you a room where traders are all sat around trading is still called a trading floor. You site the flash crash, great, a once in a 30 year event, and I actually was working...

Im sorry but I take issue with that. Spreading (not that I am a die hard spreader, i make money outright trading and spreading) adds infinitely more liquidity to the market. If a market is in freefall I would never be making bids in it as an outright trader, but as a spreader I will have bids...

Yeah also you an just stack the order book 3 or 4 prices back. 90% of the time you won't get filled in the next 5 seconds and you will be at the front of every price when it gets there and just pull the order if you don't want it. Just as many orders will be pulled. Only way to combat HFT is...

I agree i960 As much as I hate to see costs going up I think it will require a little sacrifice from everyone to rebalance the markets to make it a more level playing field and perhaps having a lower limit on how low trading comissions can go would be the way forward. It needs to be low enough...

Fair comment texttrader In the UK all prop firms..99% of firms are futures only. Very little interest in equity trading. But everything you say is true in the world of futures prop trading and we don't need to take exams so that might not be the issue. I know a few guys with prop firms and...

Texttrader What you say is all true I am sure. But unfortunately businesses aren't set up with the view of 'what will help out the little guy'. The fact is a lot of the prop firms that encourage small traders to get into the business don't make money and therefore are on the decline. Focusing...

I totally agree with you about the 2001 market scenario. I started trading professionally in 2005 and the markets were a lot fairer back then without doubt and the markets did a lot more volume. But I really don't see how we could ever go back to those days because it wasn't just manipulation...

I am saying that we shouldn't throw the baby out with the bath water. Synthetic spreading is a huge part of the liquidity provided in the market. Very very few of the orders in the market are just people putting an order it at a level and waiting for a fill. Over regulation is sucking...

Cancellation fees wouldn't really work as spread traders (that provide a lot of needed liquidity to the markets) use autospreaders to quote spread prices to the market. Theyre constantly adjusting their bids and offers away from market and are certainly not high frequency or manipulative but to...

hey LondonKid, i used to do a bit of Canadian against US Treasuries, its one of a few spreads I look at. I try and have as many going as possible and cherry pick which one is looking best

I will PM you Bone, sounds like we have a lot in common

Hi Bone. We have the same risk limits and rules of risking traders capital in the UK. Thats a very macro level risk management. Im talking more about support from management.. how are they trading at the moment? Should they be encouraged to increase their size, should they tighten things up...

I think the point and click firms have died out, but to be honest I think that has a lot to do with bad management more than people not being able to make money. I know plenty of "point and click" traders that make money. Myself included. I think the hedge fund style prop firm is more...

Yeah but adapt to what? Its good for traders to have lots of prop firms out there, they compete for the good guys (purely from a selfish point of view) but I love the industry and want to see new blood encouraged in and helped. Not just faceless offices where you need $50k to sit down. If that...