Could anyone explain how Bright Trading works? exam necessary?

[cruisecontrol]

Usually prop firms have better rates than retailers, better tech, and they pass through rebates. I can understand why they would up charge traders in training, but a trader who makes money has lots of options so they have an incentive to keep them.
Also, 99% payout is ridiculously high, so maybe that’s the reason for higher fees.

Ah. You meant Bright's structure makes no sense. I agree, that was really my whole point.

I traded with them years ago and their philosophy was to discourage in and out constant trading. Let alone HFT. Even though they gave you leverage and commissions were some of the lowest in the industry.

Haven't a clue what the story nowadays but it seems no one else that has posted so far does either. Yet that hasn't stop the speculation.

SunTrader, the thread you linked a few posts back has the following post in it from 2008:

Bright is a good prop firm. The only thing can improve on is the comission rate. If they could match IB's commissions for low volume traders, they'd be perfect. Also, get rid of the desk fee.

They weren't beating IB's rates back then, and they still weren't in 2014. Unfortunately I can't find the fees page on the wayback machine but I recall that even their highest tiers were worse than IB. Sorry but that is not even close to being "lowest in the industry"

 

[cruisecontrol]

Ok I found it. Check this out, it's hilarious.

https://web.archive.org/web/20140731202654/http://www.stocktrading.com/index.php/fees-2014

Also, it's not listed on that page, but when I phoned in to ask them, the margin interest rate I was quoted was absolutely nuts. Like Schwab tier 8% or something. Imagine actually using the huge leverage and holding overnight with those rates.

 

[zdreg]

Haven't a clue what the story nowadays but it seems no one else that has posted so far does either. Yet that hasn't stopped the speculation

Isn't speculation what Wall Street is all about?

 

[piyayo]

Last time I looked into bright was about 6 years ago. They charge very high fees, higher than regular brokers (IB/lightspeed). The payout is 99%. The only other difference vs a regular broker (besides higher fees) is you can access massive leverage, upto 30:1 overnight.

How useful is it to have massive leverage? You can get 6.67:1 with portfolio margin. To actually use much more than that safely, you almost need a kind of holy grail strategy that has tiny drawdowns.
The other possibility is you want leverage between 2 and 6.67, but don't have enough capital to open a portfolio margin account.

So logically, their clients either
a) are severly undercapitalized
b) have a holy grail strategy with tiny drawdowns

Either way, if someone is with Bright and they are successful in growing their account quickly, the high fees will be a strong incentive to leave ASAP to reduce costs. Esp since holy grail type strategies tend to be very limited in capacity.

How many type (b) traders are out there, at the right phase of their growth where Bright makes sense? It's a very weird business model that doesn't really add up for me. They are supposedly reputable, but have a structure that seems to suggest what they actually do is churning gullible new traders for fees

Very useful answer, thank you very much. I make an idea about their business

I traded with them years ago and their philosophy was to discourage in and out constant trading. Let alone HFT. Even though they gave you leverage and commissions were some of the lowest in the industry.

Haven't a clue what the story nowadays but it seems no one else that has posted so far does either. Yet that hasn't stopped the speculation.

Thank you as well

 

[traderjo]

DTTW and somebody like Bright or Hold Brothers can't be compared with each other
Bright/ Hold regulated in US the other hell knows where .. they claim hundreds of trading offices world wide but there is no proof

 

[zdreg]

DTTW and somebody like Bright or Hold Brothers can't be compared with each other
Bright/ Hold regulated in US the other hell knows where .. they claim hundreds of trading offices world wide but there is no proof

As previously said piyayo does not do his homework. He should have known that Bright and Hold are members of Finra. His posts are full of factual errors,
"
I guees all of those above (DTTW, WTS, Hold Brothers, FTG, BDT) are not members of Finra and my funds won´t be secure for this reason, right?"
The statement bypiyayo is prima facie nonsense, which ignores reality

 

[SunTrader]

SunTrader, the thread you linked a few posts back has the following post in it from 2008:

They weren't beating IB's rates back then, and they still weren't in 2014. Unfortunately I can't find the fees page on the wayback machine but I recall that even their highest tiers were worse than IB. Sorry but that is not even close to being "lowest in the industry"

Can't help you either ... that one(1) post disagreed with me.

Shocking to find such a thing on the internet - disagreement.

 

[zdreg]

Ah. You meant Bright's structure makes no sense. I agree, that was really my whole point.



SunTrader, the thread you linked a few posts back has the following post in it from 2008:



They weren't beating IB's rates back then, and they still weren't in 2014. Unfortunately I can't find the fees page on the wayback machine but I recall that even their highest tiers were worse than IB. Sorry but that is not even close to being "lowest in the industry"

Absolutely. The Bright Brothers were very slow to adjust.

 

[cruisecontrol]

Can't help you either ... that one(1) post disagreed with me.

Shocking to find such a thing on the internet - disagreement.

huh? what are you on about? The thread you linked is full of people talking about the high commissions. Search other threads and you will find hundreds more. Overwhelming evidence. Now read the archive link I posted from 2014. Are you saying their own website was lying about their commissions?

Give me a single piece of evidence that their commissions were some of the "lowest in the industry". Heck, forget evidence. Give me a single anecdote. You said you traded with Bright. How much were YOU paying them?