I heard of this as well. Problem is you have to use their "special" route which they get paid for and you get screwed on executions. If it's too good to be true.....
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has anyone experienced unlimited trading?
- Thread starter kipster
- Start date
Everyone is making good points. How well are they capitalized? What firm offers this? OP should spit it out. (So we can all check SEC.gov for their filings).
But look at the obvious. If a firm makes only $600 on its best traders, that firm will be out of business very soon. In the meantime, it is going to be quite a bare bones operation (in fact, so bare bones I doubt it exists). A firm needs to make more than that on its best guys to provide any support, to turn a profit, and in this case, just to survive.
The traders who could save the most money on this deal if it was real (aka the biggest volume guys) are also the good traders, they are the ones who stand to lose all the money they've made or have locked in a firm, or have a person working at the firm when they are statusing an order or need a borrow or need extra BP or a lockout change during flash crash etc.
But look at the obvious. If a firm makes only $600 on its best traders, that firm will be out of business very soon. In the meantime, it is going to be quite a bare bones operation (in fact, so bare bones I doubt it exists). A firm needs to make more than that on its best guys to provide any support, to turn a profit, and in this case, just to survive.
The traders who could save the most money on this deal if it was real (aka the biggest volume guys) are also the good traders, they are the ones who stand to lose all the money they've made or have locked in a firm, or have a person working at the firm when they are statusing an order or need a borrow or need extra BP or a lockout change during flash crash etc.
yea all good points firm been around a while but think a firm making money from these monthly fees rather than commissions based on volume is also a key point. .0004 is just the clearing fee and the trading firm only makes on the 600 per month . At the end im sure the model works hence its being offered. Like any other unlimited deals offered with phone companies etc bank when the user stops using the phone yet still pays monthly. Just my thought. But not bad for decent volume, i dont do too much but 600 will definitely save me on my fees.
Quote from kipster:
At the end im sure the model works hence its being offered.
That is kind of ignorant statement considering how many firms shut down consistently and how many people lose money to BS scams and business models.
Simply, this model won't work because they limit their upside on any heavy trader and won't attract, nor retain, their monthly fees on smaller traders (who will not enter into this deal b/c why pay 600 a month when you trade light volume).
Do your DD and look more into it. Understanding their model is one part, but checking their SEC.gov filing to see how much capital they actually have is another way. Good luck.