How much does a prop shop make ?

Understanding the real whsle cost would be a valid question in my opinion incuding the rebates and perks.

Everybody is entitled to make money.

How could any trader critisize another trader for wanting more information?...
 
Quote from DHOHHI:

1 - If you're thinking of possibly opening an office one does their homework by calling the firm and finding out what fixed (base) costs there are, what variable costs are and then assesses the potential. And you do that perhaps a number of times until you find a scenario that may be worth your time or decide the opportunity isn't as potentially profitable as you hoped it to be. You don't gather this info by posing such a question on a trading thread.
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Why would a professional business tell me these intimate things ?

If I can't ask such a simple question in a so called "Elite" traders forum then where can I ???

I am in discussions with a potential firm about opening a local office BUT before I waste my time,money and energy doing my due diligence, I don't think a simple post in here would hurt.

I'm just curious to see what kind of initial feedback I get.
 
Joab,

May all the good happen to you that you can find. Your a great American...Make the system work for you and discover what you can, and do not forget to share the information with us here n ET.

WE NEED MORE ENTREPRENEURS!


Quote from Joab:

Why would a professional business tell me these intimate things ?

If I can't ask such a simple question in a so called "Elite" traders forum then where can I ???

I am in discussions with a potential firm about opening a local office BUT before I waste my time,money and energy doing my due diligence, I don't think a simple post in here would hurt.

I'm just curious to see what kind of initial feedback I get.
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Would you like some cheese with that whine?

Talk to several MANAGERS @ several prop shops and compare answers. Start out by introducing yourself to your own firm!
Opening a firm and never even visited one is like opening a restaurant and never eaten in one.

You only have a small handful of people that actually trade on this web site!

Good luck.
 
if you are paying .75 and are actually a profitable trader, and are doing some kind of volume, minimum2-3 million a month. Squeeze them under .3, in my experience these people dont deserve anything, most of these guys are just scumbags... They dont deserve any loyalty...its all about the $$$


Quote from Joab:[

LOL

They call this place elite trader ?

It's a simple question folks ... don't any of you "elite" traders have the answer ?
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It depends on how big your firm is: i.e. how much volume goes through the doors. The clearing firm usually has fixed costs in the range of .001 to .002. Everthing on top of that is profit.

Multiply .0055 or .006 (.0075 - .0015) by your average daily volume and voila!
 
Quote from Dogballoon:

It depends on how big your firm is: i.e. how much volume goes through the doors. The clearing firm usually has fixed costs in the range of .001 to .002. Everthing on top of that is profit.

Multiply .0055 or .006 (.0075 - .0015) by your average daily volume and voila!
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Thank you that was the answer I was looking for !
:D
 
Quote from Joab:

Thank you that was the answer I was looking for !
:D
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Sure thing. Efficiency and fairness rise with the transparency and proliferation of information.
 
WHEN THEIR RUN RIGHT THEY MAKE MILLIONS AND MILLIONS

THE KEY IS THE OWNERS REALLY HAVE TO BELIEVE IN WHO THEY HIRE TO TRADE

M LOOK FOR SOMEONE WHO REALLY BELIEVES IN YOU
 
Quote from Joab:

Other then exchange and other fees how much of my commish does a prop shop keep / make ?

Where would be a good place to learn the internals of how shops work.

btw, I trade remote so I've never even been to mine.
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day trading prop shops charge a desk fee, data fee, commissions, charge for losses, and have incredibly tight risk control so the trader cannot make money. they are kind of like a boiler room but the clients come to them.
 
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