Payouts for a Futures Broker

F

FirmTrading

I would like to know others experience with payouts for a futures broker. Is a 50/50 split the norm? I heard some are getting a 70/30 split?
 
Futures brokers don't provide payouts. Proprietary brokers that deal in Futures trading provide a payout.

Perhaps, you can reword your question under the appropriate thread which is prop trading.

However, a search under Google or our own forum search might be best.
 
Broker payouts from the firm they are working for. Introducing brokers (IBs) have associated persons (APs) that they employ. I have heard payouts from as low as 25% to about 70%.
 
FirmTrading said:
Broker payouts from the firm they are working for. Introducing brokers (IBs) have associated persons (APs) that they employ. I have heard payouts from as low as 25% to about 70%.
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Payouts for what dude? They don't get performance fees from client accounts they make money off commissions and a few other things but you don't get performance fees from trades u make for a client account.
 
I think he means

payout % = broker employee share/gross commissions

So, if the payout is 25%, and the guy brings in $400,000 of gross commissions to the firm in a year, he gets paid $100,000.

I didn't know they still had full-service futures brokers anymore. I thought that went the way of the dodo bird!
 
The payout will vary greatly from firm to firm. Some may have a payout structure where the firm keeps the first $2,000 (per month) and then it goes to 30% to the broker after that. Some may have a graduated payout scale, i.e. 10% to the broker @ $2,000 gross commissions, 20% from dollar 1 from $2,000 to $5,000 & 60% above $5k for the month. Some may even payout @ 95% but also charge a small ($1,000 per month) desk fee and small per ticket charge. And all kinds of combinations of the above. Each broker should look at what works best for them based on their past monthly production and type of business. A well established broker with a good track record of gross commissions should be able to negotiate good payout terms since the firm wants a high production broker.
 
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