Bright Trading's new payout model
- Thread starter Maverick74
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I can't speak for Echo but I can't see why there would be.
No, I think all the prop firms clearing Merrill have a huge leg up on the firms clearing GS now.
Yeah, we've had a lot of money with Merrill for 20 years, and they have been "courting" us for a long time - but (dare I say it) - when we addressed this, they were very evasive about the question since they are "BofA, Merrill" and have other issues.
Once again, if it boils down to something as simple as joining CBSX or using Merrill to level the playing field at some point, so be it.
How is Vtrader dealing with this? Are you guys self clearing (I forgot, sorry).
Don
Don, as I've told you in private and on ET, we have never been a 100% payout firm. We never had members that acted as customers. For the life of me I don't know how you guys got away with it for so long. Even Robert Green wrote about this like 3 years ago that he didn't understand how some firms could get around this rule.
No, we are not self clearing. We clear Goldman, Merrill and Penson. I hope you enjoyed your cruise. I bet that inbox got pretty full while you were out. Sorry.
Quote from Maverick74:
Don, as I've told you in private and on ET, we have never been a 100% payout firm. We never had members that acted as customers. For the life of me I don't know how you guys got away with it for so long. Even Robert Green wrote about this like 3 years ago that he didn't understand how some firms could get around this rule.
No, we are not self clearing. We clear Goldman, Merrill and Penson. I hope you enjoyed your cruise. I bet that inbox got pretty full while you were out. Sorry.
Loooong cruise, kinda cool...don't need to see any more churches or museums for quite some time. I have a call into our "guy" at Merrill - Unless you want to PM me your contact as well....
(let's take this part of the thread if that's ok now).
Thanks....
Don
Okay so its really about Margin/leverage. I do not use either, I have enough capital/securities that I do not need to do that. I mainly do options (Short options) both puts and calls.
I do not daytrade. Although I might modify/adjust positions.
The nice thing about not using margin and leverage is not worrying about margin risk during swings in the markets or interest payments.
I can wait out some of the stormy periods.
I do not daytrade. Although I might modify/adjust positions.
The nice thing about not using margin and leverage is not worrying about margin risk during swings in the markets or interest payments.
I can wait out some of the stormy periods.
so in your opinions, would going with your own CBSX firm, clearing through GS would be the smartest route at the moment, given the change in the weather?
and what would the minimum capitalisation be preferable to be considered a "reputable" firm?
and what would the minimum capitalisation be preferable to be considered a "reputable" firm?
Quote from Maverick74:
Don, as I've told you in private and on ET, we have never been a 100% payout firm. We never had members that acted as customers. For the life of me I don't know how you guys got away with it for so long. Even Robert Green wrote about this like 3 years ago that he didn't understand how some firms could get around this rule.
No, we are not self clearing. We clear Goldman, Merrill and Penson. I hope you enjoyed your cruise. I bet that inbox got pretty full while you were out. Sorry.
Losses in the prop firm's capital are guaranteed by the trader's capital contribution, so the only way the firm can lose money is if they fail to adequately supervise their traders. The issue being discussed in this thread is whether a 100% payout makes it look like a retail account. I believe that the requirement for a capital contribution also makes it look like a retail account.
Leverage seems to be the big attraction for prop, but there are other advantages (e.g. training and the camaraderie of a trading room).
You do realize you're replying to a guy who thinks it's a good idea to make big directional bets before earnings annoucements and FOMC decisions?
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