Bright trading and any thoughts

[DHOHHI]

Quote from EricP:

The discussion has revolved around to talking about rates, with mention of Echo, IB and Genesis (among others) that are financially solid, ethical firms that meet the needs of active daytraders. More specifically, these firms also charge much lower commission rates than do Bright, making them much more attractive to many traders.

A few pages back, someone suggested that all this talk of 'lower rates' was just talk, and that they wanted hard facts to back this up. Now that hard facts have been presented

Eric,

There are many points one can address relative to all the posts in this thread.

Like you I trade retail and have done so full time for 12+ years. I've traded with 3 firms in that time starting with All-Tech back in 1996 and later with Tradescape until the were acquired. Times have changed greatly with regard to commissions whether trading retail or prop.

First, I know you trade very significant volume, more than probably 99+% here on ET. So Bright wouldn't work for you. But for many I suspect Bright is a good choice and I've never been a client of theirs. The nonsense some post about Bright taking advantage of newbies to me is BS. The fact they offer training (at a cost) isn't necessarily bad. All-Tech pretty much required new traders to attend their boot camps in the 90's unless you showed you were a somewhat experienced trader. IMO it's better to have people who have some understanding of the markets trade with you than those who are clueless. Both untrained and those with training may wash out at a high rate but I'd bet those with some training have a better chance of success than the other group.

Next, is cheapest necessarily the best? IMO it's not. Much depends on your style of trading and volume you generate. I don't trade with IB for a few simple reasons. I don't care for their platform being one. Could I save money through lower commissions if I did trade through them? Sure, and I'm as cost conscious as the next guy, but there are other intangibles that may make another broker better (i.e. customer service, being a smaller firm, etc.).

Last, a number of those who post here and seem to have the need to hammer Bright because of their rates seem to not have been (current or past) clients. Rather they come along and say "I can trade at XYZ for such and such". Funny how the firms mentioned have not in my time here had a presence where someone in management addressed such issues. Rather, I've seen Bright, IB and MB Trading, in the stocks arena, as those who show up and address issues as they arise. Each of them must see some benefit to having a presence here, however small it is.

Some here have even continued to point to Tuco and them being less costly than Bright. I doubt the $$$ saved through lower commissions is of much consolation now given what's happened.

 

[Shreddog]

Quote from DHOHHI:


Some here have even continued to point to Tuco and them being less costly than Bright. I doubt the $$$ saved through lower commissions is of much consolation now given what's happened.

I find it interesting that there's a built in assumption that Bright is the most financially stable of the prop firms. Perhaps it's true, probably is, but have you guys that like to think that way done anything more than take Don at his word?

Regardless, the Brights have done an excellent job branding themselves as such.

 

[reg]

Quote from Shreddog:

I find it interesting that there's a built in assumption that Bright is the most financially stable of the prop firms. Perhaps it's true, probably is, but have you guys that like to think that way done anything more than take Don at his word?

No I don't. I take Goldman Sachs' word for it.
If Bright Trading is good enough for Goldman to do business with, then they're good enough for me.

 

[Szeven]

You guys are forgetting that higher commissions and sound balance sheets mean free food and drinks on Don's rockstar tour! Hell, a free t-shirt i might even sign up!

 

[Don Bright]

Quote from Szeven:

You guys are forgetting that higher commissions and sound balance sheets mean free food and drinks on Don's rockstar tour! Hell, a free t-shirt i might even sign up!

I noticed you're joining us (in Langley at least, LOL). And, FWIW, all new traders who ask are given our fully audited balance sheets upon filing a U-4. And "students" (from other firms or the public) can view them while here.

Remind me in August to bring some T-shirts up to Langley.

See you in Langley!

Don

 

[reg]

Quote from Mom0/pH0x:

wow, that is as ignorant as it gets. you and "timcar" are deffinitely the two top contendees for the "kool aid" award in this thread...

Ignorant is the person who can't even spell correctly. A capital letter to start off a sentence would also be nice.
Public school education, I assume?

 

[RedEyeFly]

Don,
So far the greater portion of the discussion has been over trading fees and basic overhead conditions. If I could I would like to ask a few questions of your operation and how it may appeal to equity option traders.

I've been trading equity option positions for several years now, focusing mostly on income based, positive Theta strategies with the goal of netting 5-15%/month. My positions frequently become semi-complex and are risk/portfolio managed with greeks.

Are there many traders in your firm who may match this profile? Do you have individuals or groups who focus on option/index option/equity option strategies? What benefits would a prop shop offer to an options trader. Do you support traders who may use options for positions which could potentially be held for over a month? What commissions are involved with this? What profit sharing structure does your firm employ (unless this is confidential)?

Thank you for your time,

Best,
Eric

 

[NY0BScalper]

Quote from reg:

No I don't. I take Goldman Sachs' word for it.
If Bright Trading is good enough for Goldman to do business with, then they're good enough for me.

So GS only does business with ethical parties, never pure scumbag criminals? (Not saying that Bright is that, but if they were, I don't see any evidence to show that GS would avoid business with them unless GS thought they would be prosecuted and tarnish GS' name, making other parties less likely to do business with GS).

So again, Don, I asked you this in another thread... what percentage of your guys who are daytraders, guys who predominantly trade intraday and go home flat everynight have made over $25,000 pre tax income for over 5 years? You talk about your excellent retention rate, yet of those who retain you never show proof that they're profitable guys and not lost hopeless junkies.

 

[reg]

Quote from NY0BScalper:

So GS only does business with ethical parties, never pure scumbag criminals? (Not saying that Bright is that, but if they were, I don't see any evidence to show that GS would avoid business with them unless GS thought they would be prosecuted and tarnish GS' name, making other parties less likely to do business with GS).

You just answered your own question.

 

[Szeven]

Quote from NY0BScalper:

So again, Don, I asked you this in another thread... what percentage of your guys who are daytraders, guys who predominantly trade intraday and go home flat everynight have made over $25,000 pre tax income for over 5 years? You talk about your excellent retention rate, yet of those who retain you never show proof that they're profitable guys and not lost hopeless junkies.

Would you trade for 5 years full time and make 0 or less than 0? Would anyone?

I think silly arguments like this just hurt the credible arguments of others on this thread.