Great thread. I`m learning alot.
Honest Talk About Commisions/Rates
- Thread starter aeliodon
- Start date
From your previous posts it sounds like you trade through IB and MB Trading. You don't trade prop? Why are you coming on here telling people what they should be paying for prop when you don't even trade prop and are paying higher rates at IB and MB Trading than the .002 you are telling people they should pay? And most firms aren't gonna give you 50:1 because it costs them extra to have the capital to give that extra leverage. Extra leverage costs money, so there is a trade off between low rates and more leverage. Also $40k a month isn't that much when you consider the monthly salary for employees, cost of capital for extra leverage, office space, T1 lines etc. etc. You are only looking at clearing costs, you aren't considering all the other costs involved, including the costs when a trader blows up his account and the prop firm has to eat his loss. That can cost a firm $20k+ a month
Any firm that's giving up $20k/monthly to traders who go through their accounts... well, deserves what they get... simple risk management and liability agreements can negate that risk, as well as policies about trading when the account balance falls below a certain amount.
Even the best risk management can't stop losses from idiots. There are a lot of idiots out there, I have sat next to some of them during my trading career. Last year a guy had $5k up and 1 minute before the close he shorted 3k shares of BRCD, 2 minutes after the close and before risk management could get him out of the position they reported earnings. The stock jumped 10 points. A $30k loss and the firm had to eat $25k of it. I have seen other traders who are losing and become self destructive and almost purposely try to blow their accounts up. I have also known other idiots that concentrate on squeezing more leverge out by searching for ways around risk management rather than focusing on their profits. They figure more leverage will give them more profits. I am not saying each firm loses $20k a month every month, but the firms with a good amount of traders have this happen at least a couple of times a year. The more leverage they give the more risk a firm takes. Ask Don Bright how much they lose each year on traders blowing up. Last year one of the traders at Pairco put on positions 700:1 before risk management caught it and shut him down and closed his account. There are a lot of idiots out there.
Tell me where I can get .001 for 20 mil with 50-1 leverage carrying large overnights, free T-3's , soft dollar rebates for rent and news feeds, etc. I am game!
and...no honest prop shop wants you to know they took ANY losses on traders. Gee... we have NEVER lost money-on a trader in 13 years . LOL Just like banks don't want you to know about embezzlement. It doesn't reflect well on management.
and...no honest prop shop wants you to know they took ANY losses on traders. Gee... we have NEVER lost money-on a trader in 13 years . LOL Just like banks don't want you to know about embezzlement. It doesn't reflect well on management.
yes...im down also...im at assent..but dam... .001 50 to 1 and no fees.....hmmmm..... i should called CEO now and start complaining 
also... the 1 year lock up at Assent is strictly for prop and has more to do with Compliance of Reg agency then a Specific Firm policy...it does not apply to retail and or LLC accts
Trust me..if it wasnt compliance...they wouldnt do it...its more headache than its worth
d
also... the 1 year lock up at Assent is strictly for prop and has more to do with Compliance of Reg agency then a Specific Firm policy...it does not apply to retail and or LLC accts
Trust me..if it wasnt compliance...they wouldnt do it...its more headache than its worth
d
Any HONEST prop shop wouldn't lie if you asked them if they took losses from traders. They might not tell you the $ amount since that's their business and not yours.
Why would they lie about something when it's so obvious that they'd be lying? Everybody knows that it's possible to lose more then your account, even when levered 4-1 or 2-1 on a retail account. When you're levering 10-1, it's very VERY easy to lose more then your deposit.
Why would they lie about something when it's so obvious that they'd be lying? Everybody knows that it's possible to lose more then your account, even when levered 4-1 or 2-1 on a retail account. When you're levering 10-1, it's very VERY easy to lose more then your deposit.
Wow that's really sad. Any idiot can take a reckless gamble ahead of earnings. The only solution is to have a 4. pm cut off where you can't enter any orders or have positions open greater than 2x your deposit. But there's no excuse that the prop firm can make about this. They've been in the business very long and have heard all these stories and need to be prepared to deal with these kind of situations. Any firm that's losing money like this month after month deserves it. Never extent credit to a lender who can't pay it back and don't extend leverage to anyone that can't handle it. Now that I think about it 50-1 leverage up front is stupid - every trader ought have to work hard to prove that he can handle it by showing consistency and respect for risk before he gets that kind of leverage. 700-1 is just scary - no one can handle that kind of leverage, it should never even be an option.