You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Any prop firms in NYC that I could join?
- Thread starter Hyudra
- Start date
If you go there, know that any sub-LLC is likely getting charged around .002 by their clearing firm, max. Everything on top of that commission is gravy to them. Calculate your average monthly volume and see how much goes to you and goes to them on the rate they give you.
Quote from Dogballoon:
If you go there, know that any sub-LLC is likely getting charged around .002 by their clearing firm, max. Everything on top of that commission is gravy to them. Calculate your average monthly volume and see how much goes to you and goes to them on the rate they give you.
gravy?
rent , regulatory expenses trading expenses and other expenses are nonexistent? return on capital is supposed to be zero? salaries to be paid is zero?
interest on borrowed money is zero?
profit to the organization should be zero?
Quote from Hyudra:
I've been thinking about joining a prop trading firm, as working tons of hours at Morgan Stanley doing support isn't the most satisfying thing in the world. Whether it's remote trading or in the office, I don't mind. Does anyone know of any firms I could join?
check other threads on this subject.
zdreg it is gravy. Most props with 15 or more guys doing 15 million or more a month vol are at .001-0015 per share. The avg commission they charge is .004 or so. Thats 60k or more a month on 20 mil of vol. There expenses are not over 15k a month period so they're netting a huge 45k a month. What interest on the money they loan? Lets say an llc has 1.5 million in there account and subs it out to 15 guys. The llc has 6 million buying power for all 15 guys and it costs the llc zero. Plus there's no overnights so there making 5% on the treasury bill or credit interest. Anyone doing 1 million a month vol is crazy to be paying over .003 and can proably get .0025 and huge leverage
who absorbs the ecn fees? who is responsible for the risk managemnt if the clearing fiirm provides the risk managemnt. rest assured if something goes wrong even if the clearing firm is at fault the other firm will eat losses directly from the deposit they provide. all fees that the clearing firm pay out is passed on.
lastly your numbers are too low. the firm is likely to be paying 1.75 to 1.90/shares if they are doing vol. of 20M or above.
it is not gravy.
lastly your numbers are too low. the firm is likely to be paying 1.75 to 1.90/shares if they are doing vol. of 20M or above.
it is not gravy.