Account size / per share Volume

L

Lightningsmurf

Hi,

A friend of mine [for reasons too complex and potentially off topic to detail] is looking to trade 1 million shares per month. He will have access to 10:1 buying power, but is stuck paying somewhat high commissions [$0.015 / share]. He is wondering what his minimum account size should be to accomplish this goal of 1 million shares per month? He is a fairly quick study, but doesn't have much trading education under his belt.

Ignoring the fact that he would be better off with a lower commission rate, how much money do you think he should begin with, and can you suggest any trading methodologies that would lend themselves to this sort of thing? Obviously rebate trading is out of the question since his commissions aren't very competitive.

Cheers.
 
Quote from joeyata1:

he's paying what 1.5 cents per share?
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I debated whether to add that part because I knew people were going to focus on it despite being asked to ignore it. His commissions are a bit high, but he gets a lot of perks, 100% payout, no addtional charges, and a monthly salary. All in all it's a pretty good deal.
 
Figure he would pay $10k/mo over what he would at a place like Assent or Genesis. At Genesis he could get 10:1, 100%, .003 +sec/ecn, $5/10k deposit. This is assuming he has his licenses.

That better be a damn good monthly salary!
 
Why do you have to trade a million shares a month? For what? To make your broker rich, stroke your ego and go bankrupt??

High volume does not equate to high trading profits or trading prowess!

Quote from Lightningsmurf:

Hi,

A friend of mine [for reasons too complex and potentially off topic to detail] is looking to trade 1 million shares per month. He will have access to 10:1 buying power, but is stuck paying somewhat high commissions [$0.015 / share]. He is wondering what his minimum account size should be to accomplish this goal of 1 million shares per month? He is a fairly quick study, but doesn't have much trading education under his belt.

Ignoring the fact that he would be better off with a lower commission rate, how much money do you think he should begin with, and can you suggest any trading methodologies that would lend themselves to this sort of thing? Obviously rebate trading is out of the question since his commissions aren't very competitive.

Cheers.
More...
 
Quote from Lightningsmurf:

Hi,

A friend of mine [for reasons too complex and potentially off topic to detail] is looking to trade 1 million shares per month. He will have access to 10:1 buying power, but is stuck paying somewhat high commissions [$0.015 / share]. He is wondering what his minimum account size should be to accomplish this goal of 1 million shares per month? He is a fairly quick study, but doesn't have much trading education under his belt.

Ignoring the fact that he would be better off with a lower commission rate, how much money do you think he should begin with, and can you suggest any trading methodologies that would lend themselves to this sort of thing? Obviously rebate trading is out of the question since his commissions aren't very competitive.

Cheers.
More...

1 1/2 cents i a rate from five years ago. Any firm offering this rate (or anything above .01 is trying to take you out to the cleaners. It is a RIP off plain and simple, the going rate is .007 and it works lower for any reasonable volumes.
 
Better traders are usually in the 2,000-3,000 share size per trade, and trade between 1 - 5 million shares per month. The 10:1 capital usage is usually way to restrictive for any of the current strategies (openings and pairs mainly these days). He should have about $20-$25K to start with, and shouldn't pay more than half of what you quoted (no matter what).

Don
 
Why does he have a goal of trading 1 million shares a month. I only trade a quarter of that and my direct access broker gives me trades at .006 with optional rebates. Find a new prop firm or open a retail daytrading account.
 
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