Forgive my ignorance but could someone please clarify what pass through exchange fees are for those of us who are uninformed. Most of that stuff I dont understand since I am only familiar wth an all in bundled fee structure. Is it anythng to do with ECN passthroughs? That is what I would like to know. Those passthrough fees really add up and I would dearly love to cap my fees at 500 dollars a month. I suspect probably not but if anyone can tell us exactly what pass through exchange fees refers to Id like to know.
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echotrade min required to start?
- Thread starter NYC212
- Start date
In other words would that be 500 a month flat for taking liquidity across all exchanges is really what Im interested in knowing. ie would it mean know 0.18 cent fees for taking liquidity. Im thinking that sounds right.
Quote from nyc212:
same thing when I called echo.
it is nice they start you out at .04(sic){actually .004} a share.
Trade 1,000,000 shares a month at the rate of .004 a share yields the Prop firm $4,000 a month. Not bad at all for the Prop firm.
Quote from Restricted:
Seriously are you people morons? The $500 month is for pass through exchange fees, you want less data?
Ring the cash register for $4,000 a month against the trader: Hopefully the Prop would be willing to forgive the $500 a month fee.
Quote from timcar:
Trade 1,000,000 shares a month at the rate of .004 a share yields the Prop firm $4,000 a month. Not bad at all for the Prop firm.
Ring the cash register for $4,000 a month against the trader: Hopefully the Prop would be willing to forgive the $500 a month fee.
OK, Don let's hear it, how much of a trader's $4K a month do you actually keep? I pay a LOT more than this each month (with a lower rate than this), and I am not naive enough to believe that is all profit for the firm. They have costs to clear trades, execute trades, pay staff, office space, lines, servers, support, and I'm sure a lot of other things. Saying they make all $4k a month in profit seems like the equivalent of spending $300 at the grocery store then saying "Wow, the store just made $300 in profit off of me."
+1. Most of the people making these posts have no business claiming they have the experience to justify the bp in the first place. This is evident (if not obvious) because they don't know how much it costs to maintain a home setup that is relatively 'enterprise level' (that is, redundant connections to the 'net, preferably one of them T1, a stable data feed [not IB's free data], s/w, etc). Have they even done any trading?Quote from Restricted:
Seriously are you people morons? The $500 month is for pass through exchange fees, you want less data? then choose less, either way you keep 100% of your (meager/nonexistent?) P/L and get to use professional leverage. I've never seen such fucking crying about these firms as I have lately. As great as you may think you are, the days of 10mm bp with no money and no experience are long gone. If, on the other hand, you have viable strategies, want significant leverage, get to keep all the profits and basically to be left alone running you own fucking BUSINESS for $500 a month + transaction costs, then just maybe its a decent place to be. I'll admit I just got back from dinner and have had a few but these bitch fests threads of "I don't really know wtf i'm doing but want unlimited upside/no downside and guaranteed success" are starting to piss me off.
And so what if the firm realizes that they can make money off credulous newbs in the few weeks or months between the time they sign up and the time they blow out? It's a big bad world out there and no one's holding your hand.
Wow!!!! two posters who loved the idea that Prop shop charges traders at least $4,000 a month commish fees and I though this board was biased for the trader or the âelitetraderâ.
For NazSpaz a review of the Income Statement might help. Itâs (Revenue â Expenses = Net Profits). At no point in my post did I say Prop firm âkeepsâ all fees charged the trader. Of course Prop shop has expenses (computers, salaries, Don Brightâs food bill LOL on last one) but not a lot.
Prop shop with 100 traders at $4k per trader: can Prop shop make a profit on $400,000 a month revenue. I say âhell yesâ maybe you say NO.
For traderNik (who appears to enjoy the Prop shopâs charging a trader high commish fees) the beauty of âElitetrader boardâ is place where newbs can go and learn if their deal with a Prop shop if fair or not
For NazSpaz a review of the Income Statement might help. Itâs (Revenue â Expenses = Net Profits). At no point in my post did I say Prop firm âkeepsâ all fees charged the trader. Of course Prop shop has expenses (computers, salaries, Don Brightâs food bill LOL on last one) but not a lot.
Prop shop with 100 traders at $4k per trader: can Prop shop make a profit on $400,000 a month revenue. I say âhell yesâ maybe you say NO.
For traderNik (who appears to enjoy the Prop shopâs charging a trader high commish fees) the beauty of âElitetrader boardâ is place where newbs can go and learn if their deal with a Prop shop if fair or not
Quote from bro59:
Last I heard (about 4 months ago), Echo asked for $5k with no overnights, or $10k for 6:1 overnight and perhaps 20:1 intraday. The unfortunate component is the monthly fee of around $500, which eats up your contribution in short order if you aren't bringing in the bacon. These guys used to be good, but with the current ownership situation I'd be careful there.
yes 500 is a bit much especially when your not a daytrader and dont need openbook and or even level 2.. any other firms offering overnight leverage on hedged/paired positions.
Nick