EchoTrade traders

kensmith

A bit off topic but anyway...

I would guess that you have a free PCI slot in your machine. If so, why not just get another Matrox dual head? They have a PCI version which works well. I have one in a machine with two 3DFX Voodoo 3 2000 cards (1 AGP + 1 PCI).

I run mine at 1600x1200 @ 85hz at 16 bit color depth on 19" monitors on a system running Win2000. Mine is a bit flaky at 32-bit color depth (it doesn't offer 24-bit) and I can't tell the difference anyway.

I got mine from PC Connection (I call in my orders on their 800 number but they have a website). They go for ~$120 plus ~$10 for overnight shipping. I've always liked them because you can order fairly late in the evening and still get next day delivery.

You can also get them direct from Matrox on their website for about the same price. I'm not sure they process orders as quickly as online retailers.
 
I'm not too familiar with how the taxes work with an LLC. I'm assuming Echo is a Nevada Corporation??? (No state taxes), or would that only apply if I'm in Nevada?

So let's say I make $50k one year and decide to take it all out. Is it taxed as investment income or regular income? Any fica/self employment or other taxes that I'd be responsible for?

If I leave the money in to reinvest, is it taxed at the corporate level and then taxed again at my own tax bracket when I withdraw it like a C-corp? (double taxation). Or does it work like an S-corp where my profits just flow through to me and are taxed in my own bracket to begin with?

All my trading related expenses are tax deductible right? What about meals? Can I set up a pension fund and sock away more than the $2k per year IRA max?

Any other tax strategies that you guys use?

Thanks a lot.

P.S.--Rushman mentioned the "training mode" simulator with Echo. Is there a way to test out the software before actually signing up?
 
When you trade through a professional broker using a LLC all of your income is passed through to you as ordinary income. So, you receive a K-1 at the end of the year and pay taxes at your taxable rate. You are not subject to the additional 14% self employment tax if your firm elects marked-to-market accounting. You pay taxes based on what you make even if you don't withdraw the money from your account. You can usually deduct any reasonable expenses through the LLC but any large items may be subject to depreciation over a number of years. Normally, you can only put "earned income" into an IRA so you might be outta luck on that one... maybe you can work part time at mcdonalds to fund your IRA.

Ofc, I'm not a CPA so don't listen to me.

fletch
 
Did anyone attend Echo's 4 day seminar in Vegas? I'd like to find out what your experiance was and wether you think it's worth attending. I've read some good reviews on the Bright seminar and any thoughts you have on how those compare would be appreciated.

BTW,
I'll be joining a prop firm this fall - still trying to decide between bright and echo


Thanks for your replies!
 
Could someone explain how people are comparing execution speeds. On listed stocks when going through dot does anyone believe that speed of fills is different across the different platforms. I use ISI and redi and when they are both working I do not see a difference. Does anyone think that any of these other platforms are faster or slower for NYSE, If so why.

Two, I am looking into alternative nasdaq platforms because ISI seems to be too difficult to change routing (this might not matter now with SuperSoes but I like having hot keys withing the platform). My question is this how do the execution speeds differ. My premise is that a direct line is a direct line. Do some of the companys volume frequently overwhelm the system as has been the case with Redi lately. In other words how do real tick and the watcher compare. (I realize some of the hot keys may be different, but do any of the keys make an important difference.

Finally, is there any reason to not use acra or redi under the new super soes. In other words is going to isld directly still faster than letting the liquidity functions of redibook or arca work or does prefencing (spelling?) market makers still make a big difference.

From my limited recent nasdaq experience (I trade 90% nyse) Most of the time I just use the redi book and my fills come back fast most of the time. Although I am considering using the ECN only function because sometimes I feel my order gets held up momentarily while a market makers clears, although at times I sometimes get that price.

thanks.

I just realized that perhaps this should be a different thread if anyone can move thanks.
 
MJT it will be nice to meet you as I'm now speaking at that seminar.

Someone else had asked me a few months ago but I wasn't asked till last month.

Hope I get a good report card posted later here. I've been told though that I'm considered a really good , knowledgeable speaker at DaytradersUSA

rtharp
 
Arca and Redi no longer use Selectnet to preference market makers. Instead, they send all residual volume from an order to SuperSOES. That is, after looking for an internal match, matching against other ECN's via direct connections, and finally other ECN's via SNET (in that order) if the order is not filled it is sent to SuperSOES.

It appears to me as I watch L2 etc when using ARCA that most often the order is filled from other ECN's as MM's tend to stay away from the inside levels anyway now with potential for large SuperSOES liability.
 
Jem,

I was wondering the same thing. I have been trading for 8 years.
The trading floor that I work on has excellent technology. Everyone has a dedicated T-1 line for each data feed and for order entry machines.

100% of my trades are listed stocks with super dot. I am considering going on my own, with echo or bright. One of my biggest worries is the lag with orders to the specialist. If I make the move, I will set up a dedicated T-1 line. If I do whatever it takes to have the best technology, will my orders have any lag?

I wouldn't want a system that is inferior to what I am using now, that would be a severe disadvantage.

What would be the best way to set up the lines?

Does anyone have any input?
 
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