Is this a fair deal?

Once again thanks for your input. I apologize for the delayed response. Here are some further details regarding the offer:
- $7.00 per 1,000 shares traded
- 1-65,000 shares traded per day is 1.225 cents per share
- 65,001-75,000 shares traded per day is 1.05 per share
basically the more share you trade the cheap the CPS
 
Quote from trad2ing:

Once again thanks for your input. I apologize for the delayed response. Here are some further details regarding the offer:
- $7.00 per 1,000 shares traded
- 1-65,000 shares traded per day is 1.225 cents per share
- 65,001-75,000 shares traded per day is 1.05 per share
basically the more share you trade the cheap the CPS
More...

Wait a second... 1.225 to 1.05 per share?

A ticket charge (the $7 per 1000) is outrageous when it's on top of a commission charge.

Plus, the going rate in 2000-2001 was .01 a share. The volatility in the market has dropped out and rates have been falling across the board, plus I believe your firm is self-clearing, so they should have even lower costs than what I mentioned. And that's on top of their expensive short product (which you will probably discover soon).

I trade about 70k to 120k shares a day and I pay around .003-.0035 (varies). I know people who get it lower.
If at some point you are doing that volume regularly, and you are not taking huge $300 gross hits, then your rate should reflect that.

As long as you do not sign that non-compete (ask for a reasonable contract), you will have the ability to eventually get your rates down to a fair level, if you're consistent and skilled. For now rip-off rates are justifiable on their end. Just come back here in 3 or 4 months and tell us your experiences, because I can already predict where you will be.
 
Also, in case I am misunderstood, that is the <b>worst deal I have ever seen</b>.

.01225-.0105 per share, even at 65k volume a day
plus
$7 / 1000 shares
45% payout
2 year non-compete

I challenge anyone on ET to show me a prop deal, where all losses are passed onto the trader, worse than that.
 
It's a straight up churn & burn shop.

With rates of 1 cent a share, you would have a hard time being net positive, let alone make any significant money with 100% payout.

It's an override scheme, nothing more. There is little plan of making a guy truly net positive, it's all about making sure you make just enough to cover the commission.

Sad, very sad, that there are still scumbags doing this.
 
Quote from Hydroblunt:

It's a straight up churn & burn shop.

With rates of 1 cent a share, you would have a hard time being net positive, let alone make any significant money with 100% payout.

It's an override scheme, nothing more. There is little plan of making a guy truly net positive, it's all about making sure you make just enough to cover the commission.

Sad, very sad, that there are still scumbags doing this.
More...

Yep, and I'm sure you can guess who it is. It's only a matter of time before this firm's reputation begins to reflect its business model. It's like they're begging the regulators to come shake them down, which will negatively affect the rest of us.
 
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