are my commisions any good??
- Thread starter jmi0493
- Start date
Ouch! I vote "reemed." In essence you pay 2-cents for a lot of your orders, AND you have to give up 30% of your profits. That is not the absolute worst deal I have heard of, but it is up there. Can I ask what firm you are with?
If you would like to compare, here is a link to the fee schedule at ECHOtrade (AND FOR DISCLOSURE, I TRADE THERE):
http://www.echotradeonline.com/fee_schedule/
There you keep 100% of profits, trade for 1-cent per share or less, depending on volume, and the ECN rates are much cheaper than you are paying (they are at the bottom of that fee schedule page).
-Jim
If you would like to compare, here is a link to the fee schedule at ECHOtrade (AND FOR DISCLOSURE, I TRADE THERE):
http://www.echotradeonline.com/fee_schedule/
There you keep 100% of profits, trade for 1-cent per share or less, depending on volume, and the ECN rates are much cheaper than you are paying (they are at the bottom of that fee schedule page).
-Jim
ok this might seem like a really stupid question but since I pretty much have no clue as to 'firm' or prop trading I'm sure you'll excuse it
so how does echotrade make money? is it then simply a broker? making money from commissions?
thank you for the enlightenement that will surely follow
so how does echotrade make money? is it then simply a broker? making money from commissions?
thank you for the enlightenement that will surely follow
Babak,
All of these prop and pro firms also make money on their commissions as well as any cut they take of profits. In Echo's case, they make money the same way as IB, give out really good rates to attract the big traders that do a lot of volume and make the money off the commissions.
Echo does back (put up all the money for) and train people occasionally, and works out individual arrangements with these people to keep some of the profits as a result of the training and capital.
But for 99% of what Echo does, they let people come in and trade their own capital, and why should any firm feel entitled to a cut of profits when they have not put up the capital for these people to trade with? There are firms like Bright that keep a cut of people's profits (25% in Bright's case, they give it back to big traders at the end of the year if they meet certain criteria) even when the firm did not back the trader, the trader was simply trading his/her own money.
jmi0493 - If you don't mind me asking, where do you trade?
-Jim
All of these prop and pro firms also make money on their commissions as well as any cut they take of profits. In Echo's case, they make money the same way as IB, give out really good rates to attract the big traders that do a lot of volume and make the money off the commissions.
Echo does back (put up all the money for) and train people occasionally, and works out individual arrangements with these people to keep some of the profits as a result of the training and capital.
But for 99% of what Echo does, they let people come in and trade their own capital, and why should any firm feel entitled to a cut of profits when they have not put up the capital for these people to trade with? There are firms like Bright that keep a cut of people's profits (25% in Bright's case, they give it back to big traders at the end of the year if they meet certain criteria) even when the firm did not back the trader, the trader was simply trading his/her own money.
jmi0493 - If you don't mind me asking, where do you trade?
-Jim
Well I'd rather not say which firm in chicago at the merc IS reeming me, and no I dont get a salary or draw, but they have put up all the money and I have bullets in most any stock I want, I use the Hammer platform and have direct access to most ecns, excellent tech support, but I guess that all comes with a price... The cancel fees really do irk me..Anyways What are you other guys paying if mine are so bad. Thanks
NO WAY!! ETG is one of the worst out there, I talked with them a while ago, there split is 30/70, 70% GOING TO THEM!!but you get a 250$ week salary,then after your 2 YEAR contract is up you go to 50/50 split with no salary.. and their technology is so far behind its funny, i've never seen anyplace so bad than that operation. talk about being taken advantage of. by the way ETG is at the CBOE not the Merc.
I'll place a guess at where you are: You are at Anthony P's operation at the merc.??? (won't say firm name)