How do prop trading firms make moneY?

Quote from Dustin:



Back it up. I'm with Lynx (now Assent) and I pay a fraction what I did at Bright, or what I would at various other prop shops.
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because they are SELF clearing they can do tht...look at the business side of it...
 
Quote from Dustin:



Back it up. I'm with Lynx (now Assent) and I pay a fraction what I did at Bright, or what I would at various other prop shops.
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Back it up? Lynx will bitch and moan and say they're doing you such a favor giving you .0075 nyse all in if you're doing 2mm/month maybe, for most new people they charge .009. THEY'RE MIDDLEMEN, meanwhile, you can go DIRECT to Assent and get .0045 for the same volume, so Lyns is pocketing .003 risk free! They don't provide anything extra for an experienced trader. And on top of that, I believe they take a small percent of your upside! I can't argue with you about Bright because I assume they're about the same and I don't know what they really charge. But if you are now paying a fraction of what you did at Bright, then you must've gotten really screwed on your rates!

Furthermore, don't give people the impression that Lynx is Assent (they way it reads from your post) Lynx is just one of many prop groups that use Assent for clearing, ie: THEY ARE JUST ANOTHER MIDDLEMAN! They are NOT Assent, and you can always negotiate directly with the end provider and get lower rates.

 
Quote from sambatrade:



Back it up? Lynx will bitch and moan and say they're doing you such a favor giving you .0075 nyse all in if you're doing 2mm/month maybe, for most new people they charge .009. THEY'RE MIDDLEMEN, meanwhile, you can go DIRECT to Assent and get .0045 for the same volume, so Lyns is pocketing .003 risk free! They don't provide anything extra for an experienced trader. And on top of that, I believe they take a small percent of your upside! I can't argue with you about Bright because I assume they're about the same and I don't know what they really charge. But if you are now paying a fraction of what you did at Bright, then you must've gotten really screwed on your rates!
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You really don't know what you're talking about. Those are old rates you are quoting. EVERYBODY in the office regardless of volume is getting much lower rates than that. Call the office if you don't believe me.
 
Quote from Dustin:



You really don't know what you're talking about. Those are old rates you are quoting. EVERYBODY in the office regardless of volume is getting much lower rates than that. Call the office if you don't believe me.
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Ok, you might be right, I havent been in that game for a while now. But the point is, you will get lower rates dealing directly with Assent than through a middleman like Lynx or whoever.
 
Guess I am in the minority. But I prefer to trade prop.



I like having a place to go and the sharing of ideas with other traders.

I like having reliable equipment with a full time tech support guy available at all times.

I like having the bookkeeping for tax purposes better than just having statements from a brokerage.

I like having a secretary.

I do not care about saving a small fraction of a cent per share on commissions as long as I have millions in buying power rather than thousands....I like the leverage.

I like the access to programs like Insight and having a Bloomberg terminal. Neither of which many would spring for at home. Sharing the cost of these is much more efficient.

There are other reasons I prefer to trade prop, but these come to mind immediately.


Peace,
:)RS
 
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