becoming your own broker dealer

Quote from yip1997:

Since the net holding for the firm (master account) = 0, it should not consume any BP.

It appears to consume the BP of an individual trader, but should have no effect on the BP of the firm, right?
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Nope, since the short stock has to be borrowed, it is a seperate event. We do get the 6.67 times our equity, which more than makes up for it. If it zeroed out, then we wouldn't be able to aggregate for long/short purposes.

(Again, not legal advice or anything, and things change, I suggest getting really good Compliance Officer - "Hi Diane" LOL).


Don
 
Quote from yip1997:

Don:

Thanks for sharing your info with us. I really appreciate it.
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WTF??? Don gives info and gets blessed like a saint... I give info and I get FLAMED!!! Thats it ...Im officially at war with Don!!!:mad:
 
Quote from TM_Direct:

WTF??? Don gives info and gets blessed like a saint... I give info and I get FLAMED!!! Thats it ...Im officially at war with Don!!!:mad:
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Come on TM, just settle down, kiss the ring, all will be better in the afterlife, LOL.

Actually one of the more civil posts IMO...but sometimes that's not saying much.

All the best Mr. TM.

Don :)
 
Quote from TM_Direct:

WTF??? Don gives info and gets blessed like a saint... I give info and I get FLAMED!!! Thats it ...Im officially at war with Don!!!:mad:
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TM:

Thank you very much. I am trying to start a trading group via a structure like prop firm or JBO. So both your info and Don's are very useful to me.
 
Quote from yip1997:

TM:

Thank you very much. I am trying to start a trading group via a structure like prop firm or JBO. So both your info and Don's are very useful to me.
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too late for niceties!!!!,,,,

Don: this is WAR,,,,ShillSecurities will begin raiding bright trading for all its business!!!!....

***ATTENTION ALLL BRIGHT TRADERS*****
-Tired of paying huge bright fees?
-Not getting 100:1 leverage for your 5k investment?
-paying more then .00001 per ahre?

Well contact www.shillsecurities.com today and tell them your a Bright Trader and we will give you:

.00001 per share ( no min. fee and a .5 cent max fee)
No ecn charges..in fact we will rebate you to boot!
Free software..free charts
Free lunch
100:1 buying power
10 days to meet your margin calls
Inside information on from all the major research firms
Back rubs while you trade from hooters girls ( who will serve the free lunch)



GAME ON DON!!!
 
Quote from cstfx:

Again, Swing was making comment about a PB, not b/d.
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exactly. The point was that unless you're doing a lot of size, retail or prop would be the route to take.

This seemed like a hypothetical thread anywho.
 
Hi,

thank you all for your posts as I find them very helpful. I was wondering if anyone would be able to put some number together as to figuring out how much you would be paying per share if you did x shares per month, & your fixed costs would be y. How many shares would your team have to be doing in order to make it worthwhile?

Thanks
 
Quote from Sky123987:

Hi,

thank you all for your posts as I find them very helpful. I was wondering if anyone would be able to put some number together as to figuring out how much you would be paying per share if you did x shares per month, & your fixed costs would be y. How many shares would your team have to be doing in order to make it worthwhile?

Thanks
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I'll give you some advie that alot of B/D owners don't follow.....you MUST make a profit on EVERY share traded and the profit margin must be sustainable no matter what the market conditions are...too many firms only gear up for huge volume but forget that there will be days, weeks even months when volume can dry up.,,,,why do you want to own your own firm ayway?
 
Back when a couple of our traders went off to start their own firms (10-12 years ago), we decided not to let that happen again. That's why we give all our traders and groups what is basically a "free franchise." This allows for a profit stream to the more entreprenurial types, without all the negatives (unknown firms tend to turn today's traders off a lot, traders are pretty savvy these days). And to keep our people away from form the "gawdawful" sub-llc's...by having all the traders being members of Bright Trading, the main firm, not some unknown with all the inherent drawbacks.

The group leaders have to provide "value added" (maybe backing some traders ("true prop" LOL), bringing in people with lower capital by guaranteeing the accounts themselves, education, mentoring,etc. etc.). They don't have to pay Compliance (costly), accountants (ditto), lawyers, no putting up $millions with Clearing Firm, just the local office and computers.

Our best example is our Canadian operation...2 guys in a garage to nearly 100 traders under them now. Of course Boston, Austin, and a couple of others are just getting going, but doing well nonetheless.


I agree with TM about having to make money by knowing ALL your costs, not just a simple mark up from Clearing Firm (that's how so many firms have failed in the last 10 years).

Our model can allow for groups at maybe 5-10million shares per month vs. at minimum 100 million shares per month for running a BD, IMO.

All the best,

Don
 
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