desk fees...black box...

[rtharp]

Desk fee's are pretty standard.

My firm doesn't charge them

but.......they won't take somebody who is happy to just trade 200 shares a day. Even though they could recoup the cost with a desk fee there is the additional expense of keeping additional staff if you have a lot of these types of traders, the extra bandwith. It's more of a liability than an asset.

Both ways can work of charging a desk fee or not.

 

[Don Bright]

Quote from felichka:

Bright charges desk fees regardless of your volume.

Actually, we rebate back all desk fees at a volume level lower than our average. 1 Million shares per month = zero desk fees.

Many traders are getting the full $4800 back....kind of a nice present at year end. This is in addition to their monthly rebates that negate any desk fees. As my friend, Mr. Tharp pointed out...we need to keep the spots open for those who are actually trading.

Don

 

[alanm]

Hmmm. I thought I was "actually trading" at a mere 150K shares/month. I must have been mistaken.

 

[calibertrader]

Typically a firm needs the trader to do about 300K a month not to have to charge them a desk fee. For beginners the firms will eat the cost, as long as they know that the trader will get his volume up overtime.

 

[Don Bright]

Just an additional note: Our average trader trades around 1.2 Million shares per month. Our average remote traders are somewhat less. This is, of course, after their learning curve of 1 year or more. The first year we hope to see the trader progress from 100 share lots to maybe, 2,000 share lots....and then it all varies trader to trader. Some of our top money makers trade 10-15million shares per month.

In our boot camps, we monitor per trade size, moving up slowly (and back down when the trader is having trouble). We've found that if a trader stays at too low a trade size for too long, then it is harder to "bump it up" to a level for adequate profits.

And to the "naysayers".(hi O-777) ...since Bright Trading caps all trades at 2500 shares, meaning that we make zero on all trades over 2500, we try to help traders get to bigger blocks so they can make more money, not so we can...the more $$ they make, the longer they stay ....If they trade 10,000 share blocks, their cost is actually .0025 ( a fourth of a penny per share). Many trade the banks and utilities in large blocks like that (or the lower priced stocks).
The "average" trader makes about 20-40 trades per day, so the volume is determined by trade size for the most part. The "automated" system traders may make thousands of trades each day.

Please don't get me wrong here....all trading, at any quantity is fine ...as long as you're making money....that is the ONLY thing that matters!

Happy New Year!!

Don

 

[Don Bright]

Quote from alanm:

Hmmm. I thought I was "actually trading" at a mere 150K shares/month. I must have been mistaken.

I didn't mean anything negative....like I said above, the ONLY thing that matters is being profitable, at any share level!!

Don

 

[javs5150]

Does any one or prop firms use a black box to trade? What are the fees?

 

[jaredand]

Quote from alanm:

Hmmm. I thought I was "actually trading" at a mere 150K shares/month. I must have been mistaken.

That's not trading. Neither you nor the house will make enough money to make it worthwhile....sorry.

 

[alanm]

I supposed I asked for it...

Quote from jaredand:
That's not trading. Neither you nor the house will make enough money to make it worthwhile....sorry.

I make more money than at least 90% of America, I live pretty well, and pay my broker enough to keep him happy. I'll put my risk and profitability stats up against anyone's. Seems pretty worthwhile to me.

 

[CalTrader]

Quote from jaredand:



That's not trading. Neither you nor the house will make enough money to make it worthwhile....sorry.

FYI: I average around 250K shares per month in equities. In these accounts I did very well last year - well into six figures.

So, I think your claim of "not enough money to make it worthwhile" is off base unless by "enough money" you mean 7 figures - which is indeed a goal for my trading operation.

If the house needs a trader to do volume - as oppossed to money making trades - then my opinion is that the trader doesn't need the house and is probably better off without them ... ...