ABN AMRO as Prime Broker

ppy93 · Oct 12, 2021

I just spoke with ABN AMRO which I believe is a very large prime broker. Based on our monthly volume of 1-2M shares, they can offer 15-20mil/share with no minimum charge per order. The only requirement is that we need to generate $120K of commission in a year. However, the requirement can be waived for the 1st year. What they offer seems very attractive to me.

What's your thought about using ABN as our prime broker? Please share your experience if you have used or are using ABN as your prime broker. Thanks!

traider · Oct 12, 2021

Is the only requirement 120K in comms? Don't you need to maintain a working capital of 15M with them too?

ppy93 · Oct 12, 2021

According to my brief conversation with the director of sales, there is no requirement for AUM minimum.

ajacobson · Oct 12, 2021

In Chicago well likes prime.

ppy93 · Oct 12, 2021

ajacobson said:
In Chicago well likes prime.

To clarify, do you mean ABN is a well-liked prime broker?

W-M-A · Oct 12, 2021

Since SocGen completely ruined NewEdge (FIMAT) I would say ABN is the best most flexible out there, however, this is for Futures I am talking. In APAC they will let you be a customer for as little as 5M USD, although I know a few guys trading for their own account with as little as 2M USD. I liked them ages ago for their wide connectivity range to derivative exchanges and native gateways for Orc system that they hosted.

ppy93 · Oct 12, 2021

W-M-A said:
Since SocGen completely ruined NewEdge (FIMAT) I would say ABN is the best most flexible out there, however, this is for Futures I am talking. In APAC they will let you be a customer for as little as 5M USD, although I know a few guys trading for their own account with as little as 2M USD. I liked them ages ago for their wide connectivity range to derivative exchanges and native gateways for Orc system that they hosted.

Thank you for your comments. I just talked to their US-based sales, I was told that they only offer PMA accounts which requires a minimum AUM of $5M which I do not have. I guess I will have to look for something else.

ajacobson · Oct 13, 2021

Lupo in Chicago. Not certain what their minimum account size is.

W-M-A · Oct 13, 2021

ppy93 said:
Thank you for your comments. I just talked to their US-based sales, I was told that they only offer PMA accounts which requires a minimum AUM of $5M which I do not have. I guess I will have to look for something else.

What is your purpose using a PB that you would not get with let's say IB, leverage, DMA execution, access to a broader list of shortable stocks...? Don't bother with the lower fees in my view as the volume requirements and the pressure of generating revenues for the PB could potentially mess up your strategies forcing you into trades when there arent any. And the rest you can get with IB, and if you have your own prop system you can plug it to them via FIX or other API's they offer, I use Python for my execution platform to IB but in the process of moving it to FIX as I am adding a few other brokers and building a SOR.

traider · Oct 13, 2021

W-M-A said:
What is your purpose using a PB that you would not get with let's say IB, leverage, DMA execution, access to a broader list of shortable stocks...? Don't bother with the lower fees in my view as the volume requirements and the pressure of generating revenues for the PB could potentially mess up your strategies forcing you into trades when there arent any. And the rest you can get with IB, and if you have your own prop system you can plug it to them via FIX or other API's they offer, I use Python for my execution platform to IB but in the process of moving it to FIX as I am adding a few other brokers and building a SOR.

You get DMA, OTC and super leverage like Hwang. You can't do HFT with IB