Has anyone managed to negotiate lower fees with IB?

[Robert Morse]

Fair enough. It's $1m at IB but they will charge you $1000 per month that can be netted off against commissions. So if you generate 1000 in commissions, you won't pay anything.

I personally think that you need 5m+ (as you say) to make the best out of it.

Prime brokerage is based on "need", not cost. You need a service your Prime does not offer.

 

[tonyf]

Prime brokerage is based on "need", not cost. You need a service your Prime does not offer.

Eh? have you ever worked on the buy-side?

 

[Robert Morse]

Eh? have you ever worked on the buy-side?

Yes. 25 years. I was willing to pay for services that made me money.

 

[tonyf]

Yes. 25 years. I was willing to pay for services that made me money.

Ok

 

[traider]

Yes. 25 years. I was willing to pay for services that made me money.

What services make customers the most money nowadays in terms of ROI? Is it colocation?

 

[Robert Morse]

I have no idea, but co-location is not a strategy, it is necessity for low latency. Low latency is very expensive from hosting fees to non-display fees. The AUM has to be material and the edge has to require this, It is not uncommon for this to get >$15K to $20K/month if you need NYSE Data all in.