Misc. Fees at Prop firms?

[jmathers34]

Originally posted by Don Bright



If you pay ECN fees all the time, and get paid a portion back sometimes, this doesn't make sense. All those rules on Isld are changing anyway...so we'll see.

Don

Like I said I don't take liquidity I add liquidity. By the way this strategy has been very successful the last two years due to the lack of momentum.

So what you are saying that if you add liquidity and get ECN rebates it does make sence to go with a firm that gives ECN rebates.

What prop firms out there give ECN rebates for adding liquidity?

 

[chisox]

Going back to the reason you started this thread,,,,
I think it depends on the firm,,,and it's good information to get straight with a firm when discussing terms....

I had a horrible time at worldco getting gouged with hidden fees....agency fees,cost of bullets, the phrase "all in", ssviolations, etc. They would take dough first and ask questions later,,,,,,especially look out for obnoxious agency fees. If your prospecting firms be damn clear on this subject and for whatever its worth, make damn sure you have good software, not some shitass rediplus good luck

 

[lescor]

Depending on which exchange the firm is a member of, you may have to pay an annual exchange membership fee.

 

[st0ckman]

if your firm doesnt give you 256M Ram they are cutting corners plain and simple.

 

[Don Bright]

Originally posted by jmathers34


Like I said I don't take liquidity I add liquidity. By the way this strategy has been very successful the last two years due to the lack of momentum.

So what you are saying that if you add liquidity and get ECN rebates it does make sence to go with a firm that gives ECN rebates.

What prop firms out there give ECN rebates for adding liquidity?

Once again, if there is an "edge" for our traders we want it. We are looking into the whole "adding liquidity" program from all the ECN"s and will see what can be done. We have always simply "absorbed" the ECN fees, but we're checking into changing the policy.

Don

 

[speculator69]

Originally posted by Don Bright
Due diligence is key when picking a firm, and I have posted many of the things you should look for doing so.

No ECN fees (and other hidden charges).
Our desk fees are $400 ($200 remote) with rebates at a very low volume number.

Check all financial statements, be sure the owner's have at least a few million of their own money in the firm (not just the traders money).

Check compliance issues, be sure they are "above board"...

Training is very important (just for an example: our traders come back for advanced training as often as they like, free of charge...many come back 3 or 4 times a year)...

Don't be swayed by "bells and whistles" some "brand new" firms may have expensive new equipment (paid for by other peoples money), whereas the firms who have been in business a long time, have stable, quality equipment that is being updated when necessary.

Good luck in your venture...

Don

Don, I actually prefer a firm with low rates and ECN rebates--I do a lot of bidding and offereing. Bright doesn't offer ECN rebates. And do you still charge $900/month overhead if a trader wants his own computer?

A firm with the latest hardware and beneficially unique trading software is also critical. Don't buy into the "technology doesn't matter" spiel. That is only promulgated by firms that can't compete on technology. This is purely anecdotal but in my experience a 100 millisecond speed advantage over the course of a year can be equivalent to saving 1/4+ cent per share if you do a lot of scalping.

 

[Don Bright]

Originally posted by speculator69



Don, I actually prefer a firm with low rates and ECN rebates--I do a lot of bidding and offereing. Bright doesn't offer ECN rebates. And do you still charge $900/month overhead if a trader wants his own computer?

A firm with the latest hardware and beneficially unique trading software is also critical. Don't buy into the "technology doesn't matter" spiel. That is only promulgated by firms that can't compete on technology. This is purely anecdotal but in my experience a 100 millisecond speed advantage over the course of a year can be equivalent to saving 1/4+ cent per share if you do a lot of scalping.

$400 / mo is what we charge with dual screen Redi. We have the best technology, and it gets better all the time. See, we have the luxury of having others pay for it (SLK, GS), so why wouldn't we upgrade? Our connectivity is a good as anyones, and so are our computers.

I agree with the speed issue, and although it varies a little bit from office to office, we are very pleased with the performance.

We can, of course, have whatever technology we want...and the vendors are always "courting" us...we choose our stuff, and make changes when needed. The "licensing" of other peoples software, which some firms do, can be done by anyone...if there is a true benefit.

Good Trading!!

Don

 

[SilverBullet]

The potential of earning income through ECN rebates is phenomenal. I have known a number of traders that actually trade much better when bidding and offering. It prevents them from getting retail happy, and overtrading . On bog moves it still is important to have good retailling skills. But the credits can turn a negative 1000 day into an even day, while not trading for credits.

 

[jmathers34]

Originally posted by SilverBullet
The potential of earning income through ECN rebates is phenomenal. I have known a number of traders that actually trade much better when bidding and offering. It prevents them from getting retail happy, and overtrading . On bog moves it still is important to have good retailling skills. But the credits can turn a negative 1000 day into an even day, while not trading for credits.

I agree

 

[GHJ]

Originally posted by Don Bright

$400 / mo is what we charge with dual screen Redi. We have the best technology, and it gets better all the time. See, we have the luxury of having others pay for it (SLK, GS), so why wouldn't we upgrade? Our connectivity is a good as anyones, and so are our computers.

Don

You've alledged many times that the trading platform is a "small part" of trading and now, after some critical comments by others, you say that Bright has the best technology out there. Am I the only one that sees through this? What makes REDI+ the "best technology" and why should technology matter if you yourself claim it doesn't??? Like you said, "All we can do is: 'buy, sell, or cancel'" Right?