Bottom Line if someone wants to trade their own capital I can put them in touch with the individuals that will let them trade at the .0035 rate. I put my money where my mouth is and proved it to the traders that sent me private messages. I'm not promoting any firm, I stated what I pay earlier in the thread and the people that have a vested interest in gouging traders with commissions 100% higher than what I pay are trying to make it seem impossible, but I proved it to the people wanted to know more.
Comission and Bullet Rates
- Thread starter Hitnruntrader
- Start date
hey, what's up overthehill?
i gave you my home address dude.. i was really hoping you'd find some time to drop by for christmas or new years or something... why not drop in? we'll see just how much venting you'll do in person huh tough guy?
ps - where the hell did you get the idea i'm anti-us? lol. it's hard to believe, but perhaps you're even thicker than i thought...
5. Clearing cost is only ONE expense Socrates. Do you have any clue what rent, compliance, SRO fees, legal fees, marketing, insurance, utilities, data fees, licensing fees, exchange fees, accounting fees, and most importantly technology expenses cost??? You can't run a firm without these expenses. Then you need to make 2/10 +/- profit on top of that to make it all worthwhile. Do the math. Your fairy tale firm isn't going to last too long with .0035 rates. [/B][/QUOTE]
It's not about the rate !!!!! It's about the amount of dollars generated by the rates given. The above costs in the quote are fixed. The costs of a firm generally are fixed (althouth there is some variability for amount of executions, labor and technology to facilitate the trader.) {assuming self clearing}
If an average trader at a firm is doing less than 1 million a month (45k per day) a firm will have a tough time unless he can off set their costs with high volume traders.
A trader at 45k per day x .0035 per 1000 = $157.50 per day or $3150 per month + rebates not given and marked up ECN's if any.
A trader doing 500k per day x .0025 = $1250 per day or $25000 per month + rebates not given and marked up ECN's if any.
Which trader is more profitable for the firm ???
The point I am making is a trader doing more size deserves the better rate. I don't understand why a trader doing under 100k per day deserves the same rates as a 500k per day trader. I know firms do it... in hopes that they will step up the volume. A smarter business model would be to tier the prices for volume.... but I don't run a firm.
Banker
It's not about the rate !!!!! It's about the amount of dollars generated by the rates given. The above costs in the quote are fixed. The costs of a firm generally are fixed (althouth there is some variability for amount of executions, labor and technology to facilitate the trader.) {assuming self clearing}
If an average trader at a firm is doing less than 1 million a month (45k per day) a firm will have a tough time unless he can off set their costs with high volume traders.
A trader at 45k per day x .0035 per 1000 = $157.50 per day or $3150 per month + rebates not given and marked up ECN's if any.
A trader doing 500k per day x .0025 = $1250 per day or $25000 per month + rebates not given and marked up ECN's if any.
Which trader is more profitable for the firm ???
The point I am making is a trader doing more size deserves the better rate. I don't understand why a trader doing under 100k per day deserves the same rates as a 500k per day trader. I know firms do it... in hopes that they will step up the volume. A smarter business model would be to tier the prices for volume.... but I don't run a firm.
Banker
I agree, I was just stating what just about any retail trader can get.
You may also want to keep in mind that some firms allow for a max cap of $25 per trade for any number of shares trading nyse listed stocks.
For example, if you trade LU at 10k shares trade it comes down to $0.0025/share. Trade 25k clips and it's $0.001/share
In addition, depending on volume traded one can negotiate good rates, also for smaller trade sizes up to 1099 shares:
12/21/2000
The New York Stock Exchange today launched the pilot program for its new NYSE Direct+ automatic execution service, which provides member firms with a new level of choice in accessing the Exchange's superior liquidity and execution quality. One of the new Network NYSE offerings of order-execution services and market-information products, NYSE Direct+ allows for no-fee, automatic and immediate execution of limit orders up to 1,099 shares at the published NYSE quote.
Link to related URL : http://www.nyse.com/network
Good Luck
Josh
For example, if you trade LU at 10k shares trade it comes down to $0.0025/share. Trade 25k clips and it's $0.001/share
In addition, depending on volume traded one can negotiate good rates, also for smaller trade sizes up to 1099 shares:
12/21/2000
The New York Stock Exchange today launched the pilot program for its new NYSE Direct+ automatic execution service, which provides member firms with a new level of choice in accessing the Exchange's superior liquidity and execution quality. One of the new Network NYSE offerings of order-execution services and market-information products, NYSE Direct+ allows for no-fee, automatic and immediate execution of limit orders up to 1,099 shares at the published NYSE quote.
Link to related URL : http://www.nyse.com/network
Good Luck
Josh
It my understanding that NX and dot is free to NYSE Members. I think the free execution on superdot is somewhere around 2000 shares or less.
Non member firms have an additional fee and that is why the cost of clearing is higher at non member firms.
Non member firms have an additional fee and that is why the cost of clearing is higher at non member firms.