How Much Are Your Costs Per Share

Quote from Kruder:


So anyone have a prop firm with very high payout or 100% and low or no share minimum.

Seems like a prop firm that charges high costs is only interested in you burning out imo. [/B]
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If you open your own prop firm (every tom, dick and harry seems to have one available to open these days!) you can keep up to 95% of your payout and pay close to costs.
 
Quote from Benjamin_007:

I pay .005 net after ecn rebates per share but I trade really light volume under 60k per month but my payout is a whopping 98% so when I make profit I keep it. Payout % matter.

B:)
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.005 per share??? That's 5$ per 1000 shares!!

If I had this kind of commission... I would be broke.

I move between 4-6 million shares per month, which is not much from what I've seen around, and that already makes between 20k$ and 30k$ a month only on clearing fee.

If you trade only 60k shares a month might be ok, but if you someday need to change your trading style and increase volumen, this fees will totally kill you.

There are companies offering 80% payout and charging .15 per 1000 shares, which is 33 times less... I would take a look at them if you eventually need to increase volume.
 
Quote from Don Bright:

(My favorite discussion topic, LOL).

You guys have to realize that some are using my friend's, (Charles Kim who heads up Swift Trade) business model which is based on an "arrangement" for ticket charge per day etc. etc. If I could get some of the rates that are spread around here, then I would have to sign up for my personal trading, LOL.

NYSE has a "taking" fee of 18 mils now (they pay 8 mils). That shows up on a daily basis.

The .004 per share ($4.00 per thousand) is what our traders pay for all shares above 1,000 on any given order. The first thousand is a sliding scale down to that level based on volume. We, too, have some "special" arrangements for traders in the 15million and up shares per month.

Just trying to keep apples and bananas comparisons. I have traders who have come from the other major firm's(and, yes, some have left over the years for other firrm), and regardless of what may be said at times, all seem to be within 10-20 of one another.

And, again, "value added" comes in various forms... some firms are better for some traders, simple as that. I think we are at or near our high as far as number of traders is concerned, definitely up from the 2006-2007 level.

(I can't post exact pricing for obvious reasons, regulatory and otherwise)... but hopefully this note will put things in perspective.


Don
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hey Don thanks for contributing to this thread. i know the market and the industry is in constant change mode, so i was curious if you guys were going to compete with the canadian model? (small deposit, 20 cents per thousand shares with a profit split ...plus ECN fees)

as we have seen from a previous example, even when adjusted for profit sharing, 'krazyanyway' is still only paying 75 cents per thousand shares. (his firm also seems to have a very good reputation ....and no i am not with them ...yet :eek: )

i know this doesn't fit the 'pairs' trading model, but there are many of us out here that don't trade that style. for US traders sitting on the (canadian) fence, the big draw to Bright would be your firm's honesty, financial soundness and the ability to hang one's series 7 license.
 
Quote from Clubber Lang:

Who are those companies?
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There are several.

PMs asking me for deals will be deleted and ignored. You must find and negotiate for yourself.
 
Quote from NY0BScalper:

There are several.

PMs asking me for deals will be deleted and ignored. You must find and negotiate for yourself.
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Gee, that's nice and helpful. I bet you go around telling 2nd graders there's no Santa too!
 
Quote from cstfx:

Gee, that's nice and helpful. I bet you go around telling 2nd graders there's no Santa too!
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Since the original question was for me, I will answer it too.

If I start mentioning companies & deals, some people will say I am advertising and, furthermore, working for them. Or even being the owner... So I won't tell.

What I can say is that if you make the efford to go out there and send a couple of emails, check prop firms, brokers, etc, I believe you can get a much better deal than 5$ per 1000 shares. Even if they offer you 98%... is worthless if your costs are HUGE. At least for my type of traiding.

Thanks
 
.005 can be beat anywhere. That's easy.

But you say you can find .00015 (.15/1000) plus 80% and you were asked about it. Beating .005 is far different trading with .00015.

Quote from bcn_trader:

There are companies offering 80% payout and charging .15 per 1000 shares,
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And I think Clubbers question was a valid one based upon the info you put forth.
 
The .2/1000 and 50% payout vs. $5/1000 and 98% payout really depends on what type of trader you are.

ex 1: If you trade 5,000 shares a day and gross $200. Gross/share = $.04

.2/1000 would be: (5 x .2)=$1
200 - 1= $199
199 x .5 = $99.5 net

$5/100 would be: 5 x 5 = $25
200 - 25 = $175
175 x .98 = $171.5 net


ex 2: If you trade 50,000 shares a day and gross $400. Gross/shares = $.008

.2/1000 would be: (50 x .2) = $10
400 - 10 = $390
390 x .5 = $195 net

$5/1000 would be: 50 x 5 = $250
400 - 250 = $150
150 x .98 = $147 net


ex 3: If you trade 100,000 shares a day and gross $500. Gross/share= $.005

.2/1000 would be: 100 x .2 = $20
500 - 20 = 480
480 x .5 = $240 net

$5/1000 would be: 100 x 5 = $500
500 - 500 = $0
0 x .98 = $0 net


Choosing the firm is based off of your profit taking strategy. Trading a high volume of shares doesn't necessarily mean you should opt for the .2/1000, because the decision is based upon your gross profit/# of shares. As you can see, as gross/shares declines, your net profit dwindles at a faster rate for the $5/1000 and 98% payout compared to the .2/1000 and 50% payout. Although, you could assume that the more shares you trade, the less profit per share you will achieve.

Basically, if your trades the majority of the time are .05 or .10 profits, opt for the .2/1000. If you tend to play for a bigger move, you'd be more profitable taking a larger payout while paying higher commission.
 
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