How do these guys make $$?

[MondoTrader]

If you think 2% is too much to pay, look at what percentage of your money you pay in commissions from churning your retail account, its a heck of a lot more than 2% !

Its called a wrap account, and there are no transaction charges, just the fee. Imagine being able to trade as much as you want for 2% a year, you would come out far ahead. If your broker actually knows something about trading or investing then you are ahead of the game. The only problem is if the broker won't let you put in your own trades, or if the broker doesn't know squat, which is common. In that case, do it yourself.

There is NO sharing arrangement based upon profits. That is against SEC regs for registered reps working for a brokerage firm, if you want to share profits you need some other arrangement.

 

[TM_Direct]

[
There is NO sharing arrangement based upon profits. That is against SEC regs for registered reps working for a brokerage firm, if you want to share profits you need some other arrangement. [/B][/QUOTE]


you can share in profits if you are a RIA...usually its a very small %....but in truth most brokers share in profits anyway:
"I'll charge you 125.00 to buy a 1000 Dell...If we sell it at a profit I'll charge you 4-5%...otherewise i will sell it for 50.00 if it's a loss"

 

[MondoTrader]

oh and there is still transaction business, but its one time deals like load funds and annuities and selling financial plans. The average customer pays $500 for a financial plan.

 

[menelaus]

Most brokers are like mushrooms: kept in the dark and fed shit.
The only good trend in the industry is the negotiated wrap fee. you can negotiate your wrap down to 40 basis points with a large account. All the smart money is flowing into legit hedge funds and fund of funds managers though.

 

[TM_Direct]

Quote from menelaus:

Most brokers are like mushrooms: kept in the dark and fed shit.
The only good trend in the industry is the negotiated wrap fee. you can negotiate your wrap down to 40 basis points with a large account. All the smart money is flowing into legit hedge funds and fund of funds managers though.

don't believe everything you hear and see in movies and on these commercials......A lot of these same" Mushrooms" have been siting in cash and bonds for the past two years with their clients while traders are trying to eek out a penny or two upswing.....also, they get the benefit of time...they can buy on fundamentals and hold it for a year or more until it works out and refer to it as " a core holding" .....besides, more and more of these MUSHROOMS have the same DAS platform as you...the days of the quotron are over...I know a guy in Ft.Lauderdale who has all his brokers on E-signal and another is about to start using PointDirex.

 

[omcate]

Quote from TM_Direct:


A lot of these same" Mushrooms" have been siting in cash and bonds for the past two years with their clients while traders are trying to eek out a penny or two upswing

One of my friends is a bond broker. He ***claimed*** that he earned $500,000 commission in year 2001.

 

[TM_Direct]

Quote from omcate:



One of my friends is a bond broker. He ***claimed*** that he earned $500,000 commission in year 2001.

i know a guy who OWNS a bond brokerage in florida and he has been ROLLING in the dough for the past two years...seems like everytime I talk to him he's buying another house in the mountains...your freind is probably telling the truth

 

[Jayford]

Quote from TM_Direct:




...the days of the quotron are over...

That's a term I haven't heard for awhile.

Jay

 

[TM_Direct]

Quote from Jayford:



That's a term I haven't heard for awhile.

Jay

Remember those things? Green screen, level I quotes...DELAYED!! LOL...I actually had a guy ask me if they were still around!!!....pretty soon ILX will be viewed the same way...Trade cast too!

 

[Jayford]

Quote from TM_Direct:




Remember those things? Green screen, level I quotes...DELAYED!! LOL...I actually had a guy ask me if they were still around!!!....pretty soon ILX will be viewed the same way...Trade cast too!

I used to work with one every day. I thought I was leading edge with that thing.