FX Prop/Trading House Startup in Calgary

Quote from mabenn:

What doy ou mean Via Knight?
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Knight owns HotSpot FXr/FXi. What they're doing is allowing FXr (retail) clients to access FXi via FXr's omnibus prime broker account at Knight. The benefits here are lower commissions (no middleman), no monthly volume minimum and $100k opening balance.

The prime brokers I've spoken to about FXi access quoted $25-40 per mio (they also have to pay Knight/HS, so of course their rate needs to be higher). Minimum starting balances were variable, but often higher. Monthly volume was the kicker, this may differ by PB, but ODL wanted $250-500M/month trade volume for continual FXi access.
 
I would put an ad in the paper or something to make sure you can fill the room. Maybe even call your fx broker and tell him what you are doing and maybe he will give you a list of his clients in your area
 
Quote from mabenn:


Thanks for your insight, greatly appreciated!
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Do not listen to loser mentality here. I am going to tell this:

I LOVE THE IDEA.

Here are the benefits:

1. You reduce brokerage cost.
2. You also reduce the cost of capital, because if the account is big you do not need cash as collateral but only a security (a bond, etc).
3. The sum of N brainers is GReat than the average brain times N.
4. Having an office to go to, provide discipline. You get there, say hello, take a cup of coffee, and you also filter the news from the minds of all the traders who have read/hear other news/etc.
5. If you cannot make it in a given day, you buddy can trade on your behalf and you have confidence in him.
6. You save a lot in taxes. You can have it as carry interest income/ dividend/etc.
7. If the concept works, you spread it as a franchise in the world.

Do I make sense to you know. PM me buddy, but I am not in calgary. I hope what I just gave here would be useful information as a start, but I would love it if you can send me a write up and also progress.

I have other ideas to increase income for your idea. Just shoot me a PM.

Cheers bro,

PS: those of you who are too negative, become positive or go to hell.... Ok peace now.
 
Mabenn:

Could I ask you to start writing a document, and post it here (or send it to interested member)? What do you think? We will also give deadline so that you will produce something by a given date.


Best,

RFT
 
Quote from trader123:

I would put an ad in the paper or something to make sure you can fill the room. Maybe even call your fx broker and tell him what you are doing and maybe he will give you a list of his clients in your area
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That's a great idea! Client confidentiality is a big though so who knows if he would give me a list of his clients. Maybe if it benefited him somehow?
 
Quote from trader123:

I would put an ad in the paper or something to make sure you can fill the room. Maybe even call your fx broker and tell him what you are doing and maybe he will give you a list of his clients in your area
More...

That's a great idea! Client confidentiality is a big though so who knows if he would give me a list of his clients. Maybe if it benefited him somehow?
 
Quote from Trader KGB:

Knight owns HotSpot FXr/FXi. What they're doing is allowing FXr (retail) clients to access FXi via FXr's omnibus prime broker account at Knight. The benefits here are lower commissions (no middleman), no monthly volume minimum and $100k opening balance.

The prime brokers I've spoken to about FXi access quoted $25-40 per mio (they also have to pay Knight/HS, so of course their rate needs to be higher). Minimum starting balances were variable, but often higher. Monthly volume was the kicker, this may differ by PB, but ODL wanted $250-500M/month trade volume for continual FXi access.
More...

I am exploring all of my options. I noticed what you said about the inside volume on Dukascopy. It's usually not much, sometimes just 300k.

Hotspot is where it's at, what are your overall expriences with them? What do you like? Dislike?

Thanks!
 
BTW everyone, all feedback, positive and negative is greatly appreciated. If Negative, please be clear about what you mean. We learn more by trying to find faults with an idea than trying to prove it's validity.

Thanks again all.
 
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