Bright trading and any thoughts

Quote from Don Bright:

Just a comment. I'm doing my best to respond to all the phone calls and emails. From what I'm hearing, especially from the "sub-llc" guys who now have no to place to trade, that our rates are as much as half what they're paying where they are (remember, all shares above 1,000 are .004). I'm doing my best to get back to everyone, and I have my Compliance Officer working overtime to process paperwork.

You guys that are already licensed, but need the extra buying power (since I guess some major changes have taken place), keep in mind that we don't do a simple 20 to one, or 50 to one, or any finite number, we go by "what" it is that you're doing. Openings, for example, you might use $2-$4Million. Intraday generally no problems. Overnights we slow you down at about 30 to one.

So, when you call, please help me out by giving me an idea of what you're looking for, and if what you're doing now has been working really well. Those that have been struggling a bit, we have several routes to help you as well. We believe in interaction with our traders, mentoring, and all the rest.

(Now, back ot returning phone calls...I try to give the ET'ers priority).

All the best,

Don
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I realize use of capital is worth something but these rates are absurd. Your "best" rate of .004 is still more than IB's base unbundled rate. And it pretty much makes trading <1000 shrs too expensive to do. Not trying to be a basher here as I think Bright is a standup firm. Just calling it as I see it as a prop and retail trader.
 
Quote from Shreddog:

I realize use of capital is worth something but these rates are absurd. Your "best" rate of .004 is still more than IB's base unbundled rate. And it pretty much makes trading <1000 shrs too expensive to do. Not trying to be a basher here as I think Bright is a standup firm. Just calling it as I see it as a prop and retail trader.
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what is IB's rate? this is news to me. .004 is very respectable for what you get at Bright. leverage is extremely important in their strategies. plus at Bright you don't have any worries regarding safety of funds.

does IB pay you on your short positions?
 
Quote from Shreddog:
I realize use of capital is worth something but these rates are absurd. Your "best" rate of .004 is still more than IB's base unbundled rate. And it pretty much makes trading <1000 shrs too expensive to do. Not trying to be a basher here as I think Bright is a standup firm. Just calling it as I see it as a prop and retail trader.
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I don't understand this statement. I averaged 944.25 shares per trade last year with IB's bundled rate (0.005), and I found it very worthwhile. I only wish I could do that well every year. I probably should look into going unbundled.
 
Quote from rwk:

I don't understand this statement. I averaged 944.25 shares per trade last year with IB's bundled rate (0.005), and I found it very worthwhile. I only wish I could do that well every year. I probably should look into going unbundled.
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The 1000 shrs is in reference to bright's rate. First 1000 shrs is 1 cps I believe. This number scales down to .4cps based on volume.
 
Quote from Shreddog:
The 1000 shrs is in reference to bright's rate. First 1000 shrs is 1 cps I believe. This number scales down to .4cps based on volume.
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Thanks for the clarification. My mistake -- trading via Bright last year would have doubled my commission expense.
 
The trainee rate, when there is vitrually no shares being traded can be a penny. As volume increases, rates go down, and we all know that good traders evaluate the whole package. Anyway, I think I spoke to at least a dozen of you guys and groups, and several of you have already requested registration packets.

We'll do our best to get them processed as quickly as possible.

All the best,

Don
 
Quote from Don Bright:

The trainee rate, when there is vitrually no shares being traded can be a penny. As volume increases, rates go down, and we all know that good traders evaluate the whole package. Anyway, I think I spoke to at least a dozen of you guys and groups, and several of you have already requested registration packets.

We'll do our best to get them processed as quickly as possible.

All the best,

Don
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Don,

Are those rates (1.0 cps for first 1000 shares and 0.4 cps above 1000 shares) all inclusive? That might explain why the rates seem outrageously expensive (both for 'trainees' and experienced traders). Most firms offer much lower rates, but also pass through ECN/SEC fees, etc, and I know that Bright historically has charged an 'all-in' rate, which might be worthwhile for some traders that mostly or exclusively remove liquidity. If those are "all-in" rates, then they are not as outrageous as they seem.
 
We can do either. We trade mostly straight NYSE, and the "taking rate" is like 8 mil's I think. SEC is flow through. We work with our active traders to give them the best program for them, which obviously isn't the best for everyone. We "tailor" whenever possible.

A lot of guys "take" on NYSE, and "park" on ARCA, thus reducing their overall commissions considerably. After we negotiated with NYSE/ARCA to gve rebates on listed stocks, a lot of guys go that route.

Look, I speak to a lot of traders every day. I know what is being paid. What "appears" high to some, appears low to others.

We can't be all things to all traders, but I'm extremely comfortable, and reassured, after this latest influx of conversations with so many serious traders that we are very competitive. (Heck, I have to admit to being a bit "shocked" by what some guys were paying).

We are not simply a software firm, we're a trading firm, and there is a big difference IMO.

Don
 
Not going to comment on your rates Don, but just wanted to say thanks for talking the nyse and arca into paying us rebates. That's put thousands directly in my pocket.
 
Can anyone run me through a calculation of how the commission rates work? Maybe do a sample trade, and show how much is taken out at 0.004 and 0.1?
 
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