challenging trading environment

Don I don't mean to jump on the bandwagon but I have one question to ask. I would like you to go into detail on this on.


What is the deal with this $600 to $400 monthly desk charge?
Yeah I know you are going to give me the pat answer that your low commissions more than offset the monthly fee. You charge a penny a share. Gee if I were a newbie I would be more than willing to pay 1.5 per share than to have a freaking $600 per month charge hanging over my head what for the added stress bonus.
Lets see if you have 1000 traders you would have to give up $60000.00 per month. or $720,000 per year or over 4 million over five years. Nice little racquet you got going on there. How could I be so naive to ask such a stupid question. Couple that with your $1000.00 training program ( that you clain you don't make a dime off of LOL) and the $25,000 entry fee and you got a nice business going on there. The radio advertising does not hurt along with the advertising on these boards too. Don you are making money hand over fist. How do these newbies get the $25,000 well why don't you recommend they extract it from their credit cards heck why should you care where it came from money is money.

I don't me to be harsh Don but your making so much money I'm sure you can handle with a smile on your face..
 
Wrong on my calcualtions( to late to do math)

1000 traders X 600 per month = $600,000 per month

600,000 X 12 = 7,2000.000 per year

$7,200,000 X 5 = over 35 million for 5years

Dam with a steam of cash flow comming in like that I'm ready to open my own trading company.
 
Hitman

Aside from commissions (of which you have already explained quite well, in fact too well, regarding your firm's policy on this aspect) maybe we have to consider intangibles like the trading atmosphere and the number of successful traders in a certain office.
I know that I would prefer to trade in the same room as Bob Bright and Earl Van Alstyne rather than with a guy like Hitman. LOL
And this is the reason why I have made up my mind to join Bright Trading after I pass my series 7.
 
i've got to agree with Hitman on this one. Given Bob Bright is an awesome trader, he's not going to hold your hand while the two of you are trading.....you couldn't afford to pay him what he would give up in trading profits missed by the distractions you would cause. as far as earl is concerned he is reasonably priced(1 week personal attention) but i've heard there are better teachers at bright for the money. The team concept at worldco is a very sound way to learn this business.......so it depends on the team leader you are matched up with.

btw: this was a great thread for awhile....what happened?
 
Originally posted by Shorteee
Don I don't mean to jump on the bandwagon but I have one question to ask. I would like you to go into detail on this on.


What is the deal with this $600 to $400 monthly desk charge?
Yeah I know you are going to give me the pat answer that your low commissions more than offset the monthly fee. You charge a penny a share. Gee if I were a newbie I would be more than willing to pay 1.5 per share than to have a freaking $600 per month charge hanging over my head what for the added stress bonus.
Lets see if you have 1000 traders you would have to give

up $60000.00 per month. or $720,000 per year or over 4 million over five years. Nice little racquet you got going on there. How could I be so naive to ask such a stupid question. Couple that with your $1000.00 training program ( that you clain you don't make a dime off of LOL) and the $25,000 entry fee and you got a nice business going on there. The radio advertising does not hurt along with the advertising on these boards too. Don you are making money hand over fist. How do these newbies get the $25,000 well why don't you recommend they extract it from their credit cards heck why should you care where it came from money is money.

I don't me to be harsh Don but your making so much money I'm sure you can handle with a smile on your face..
More...

OK, with a "smile on my face" let''s do some simple math. We charge $400 per month, and give rebates early on. We charge $200 remote, and rebate that at 200,000 shares (which is rock bottom number of shares).

You want to pay 1.5 vs. $400, even though you get back the $400. OK, come on in and pay 1.5 cents....isn't that easy. I will be happy to charge 50% too much.

Say you are brand new, only do 20,000 shares per day (mostly openings). .5 cents x 20,000 = $100 PER DAY excess fees. Even at 10,000 shares per day = $250 per week, or $1,000 per month in excess fees. Is that what you want?


Don't get caught up in the "come in with no money gambit" - it is a sham. The respectable firms who have been doing it for years, have cut back considerbly.

As far as the training goes, the $1,000 is the lowest around for 5 days of decent training, and many (too many it seems) return time and again for free. No one has ever questioned that low fee.

So, $400 (not $600), vs. $1,000 - $2,000 in excess fees as you described. We even rebate as the volume increases.

Sure, we make some money, and we will be in business. We give the money back when asked, no 12 month "hold" - we pay 100% of the profits. We have the highest rate of successful traders that I have seen (70+ % profitable after a 1 yr learning curve).

Let's get past the vicious attacks (not you Shortee), and just look at facts. And as I said before, there is a lot of "consolidation" going on the in the industry...so you never know who is going to be working where, at any given moment.

Trade well today!!

:-)


PS If we had no desk fee, then we would have many rooms of "movie watchers" who do nothing, do not add to the trading environment, and take up space...and we have enough of that already...:-) You get computers, phones, and office, fax, DSL (or T-1)...pretty cheap I would say. So take all things into consideration, and I think we look pretty attractive...and we will be here a long time....
 
Originally posted by Don Bright


Just wanted to repost a nice comment, so few and far between (gotta keep up my #of posts to stay competitve)..


Thanks...
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You are well ahead of the curve here on posting

Feel free to take it easy here and there

it's too hard to read everything with that many posts and me wanting to have a life other than on the internet

Robert
 
Originally posted by Shorteee
Hitman I agree but the area where your offices are located I believe is in an area that the air quality may be dangerous to your
respiratory system. Yes it's okay to visit but coming in that area of NYC everyday and wondering whether or not I may be diagnosed with a disease related to asbestos inhalation would probably distract my trading. I don't believe anyone including yourself can say the air quality is perfectly safe to breath in each and everyday. The buildings in that part of woods may and I say may have unsafe levels of asbestos floating around. Until research clearly shows that there is no asbestos or other pollutants to worry about that can affect one lungs 5 - 10 years from now I'd rather pay the extra commish. I may be overly paranoid about this but I'd rather not take the chance until the coast is clean.
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Have to admit when I was visiting ground zero I found it harder to breathe. (and I lived in LA for quite some time_...)

Robert Tharp
 
Originally posted by Shorteee
Wrong on my calcualtions( to late to do math)

1000 traders X 600 per month = $600,000 per month

600,000 X 12 = 7,2000.000 per year

$7,200,000 X 5 = over 35 million for 5years

Dam with a steam of cash flow comming in like that I'm ready to open my own trading company.
More...

OK


I''ll add some costs you aren't figuring in....

Professional exchange fee's for NASDAQ and NYSE
$183

Cost of having a squwak box in the office $150 per month
Cost of having 5 T-1's in the office $4500+ per month
Cost of having a Satalitte feed $800 per month
Cost of running dual servers in Chicago and New York (hey this is my lifeblood They better have a backup) (I'm not sure on the cost for this)

Cost of running multiple T-3 for traders so that lines don't get backed up

Cost of paying software $80 per trader (not sure on exact cost here)
Cost of First Alert and an additioanl Professioanl Exchange Fees
$300

Cost of having to pay guys to just do risk management....

Cost of adminstration....
Does that $600 per month sound like they are making a bundle now???

Robert
 
Don't forget 40 offices x $4,000 month (or more) in rent. Couple of million there alone....

Everyone sees the "easy money" - but few know all the costs involved. If it is so easy, then how come so many firms have gone belly up in the last few years?? It's not just "rogue traders" who cause it.
 
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