becoming your own broker dealer
- Thread starter Sky123987
- Start date
So WARRIOR LLC now has 20 traders with $2,000,000 BP from you.
Question "How does WARRIOR LLC make money"
All these traders are making trades everyday. "YES"
Don't they(all the traders) just pay the rate(say $10 per trade) that WARRIOR LLC get charged by its broker.
NO Profit left over for WARRIOR LLC ????????????
Siiigggghhhhh.....I keep trying to tell you guys how things really work and yet everytime you guys all spend countless hours trying to prove me wrong.....Oh wel...you guys are right and im wrong....go to swfit trades web site....does is say member FINRA and SIPC on it???? same with title?????
Ok, this thing is ridiculous! This is just constantly going in circles. Nobody cares if Swift and/or Title are not FINRA registered or SIPIC insured, it is a complete 'straw man' here. These 2 mentioned firms are NOT RETAIL BROKERS, offering people extended leverage on risk deposits. These 2 firms are 'prop firms' that actually bear all the downside risk of trader losses, there is no 'retail' money at risk, all the traders are 'contractors' of the firms. Both firms have B/D's which are refered to by Szeven. Who cares if the B/D's are making money or not, and as far as the stability of Swift or Title goes, both have been in the business for sometime now (both successful). SIPIC is irrelevant because traders have no capital at risk so there is nothing to insure loss against. The worst a trader at either of these firms could possibly ever experience in loss in the previous months earnings which are always paid one month in arrears.
As far as the expense and complications (licencing, filings, etc.) of being a B/D or self clearing, suffice it to say, it's expensive and cumbersome as hell! Why anyone who's primary focus and core competency is trading would want the hassle of doing this shit is beyond me. trading is a business, with many inputs (like most other businesses), and these inputs cost money. Find the best 'value' for the money for a B/D and clearing relationship and get on with trading!
Cheers!
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Assuming Swfit was a finra member...they could get 4:1 intraday on MONEY and EQUITIES deposited into an account...PENSON would not put the money up for them but can give them leverage on deposit...Not sure if Penson can do a JBO but if they could a firm could put up 1 million and Pen. could give around 7 mill in BP
No...I don't....its an old game firms have used for years...Hell, i once did it....some traders and Brnaces demand to have all this BP....SO firms give the trader all this BP knowing he will never use it....the BP figure you have would only come into play if you actually had 40 MILLION in OPEN positions...if you buy 1m GOOG at 400 and then sell it 2 minurtes later...your back to NET ZERO for BP....I once had a guy we use to give 2 mill+ in BP everyday...the guy never used more ten 500k but we 'shoed' it on his screen everyday because that is what he wanted to see...but if he ever actually tried to use it all it probably would result in a M-call
Tell the Truth DON....have you ever given a tradder tons of BP knowing he will only use a fraction of it???
I don't know how Swift gets their leverage, all I know is that you are wrong. Swift gets WAY more than 4:1. Swift has over 1000 traders. I think average BP is about 1 M, making the total Swift BP well over $1,000,000,000 dollar. If they only got 4:1 leverage, they would need 250 million in their LLC's. Lol. Swift and 250 million in their LLC's ...rrrright
I'm not sure how Swift does it though. All I know is that they're NOT using their own B/D anymore (BRMS) but are using the Penson B/D (MMID: PFSE). That one is FINRA registered of course.
When I was in highschool, my teachers told me not to assume things, because I would make and ASS out of U and ME.
TM, you dont know more about my trading that I do, and you dont understand that a Prop firm like title means you have 0 dollars up as deposit and at risk.
It is very difficult to discuss a topic when you assume things that are incorrect, and keep using the same LLC pooled money rhetoric on B/D's I found legitimately.
I dont understand how to get through to you.
TM, you dont know more about my trading that I do, and you dont understand that a Prop firm like title means you have 0 dollars up as deposit and at risk.
It is very difficult to discuss a topic when you assume things that are incorrect, and keep using the same LLC pooled money rhetoric on B/D's I found legitimately.
I dont understand how to get through to you.