Prop commission rates and profitability

C

chowhound888

What is the rate schedule one can expect these days for in-office trader, who doesn't do much volume but can regularly earn low/mid-5 figures monthly? I've averaged less than 2mm shares for a while now, but lately gotten into a groove and with some new strats and added size I'm expecting my volume to increase shortly.

How much leverage is profitability if at all in negotiations, given my low volume? As it stands now, I know my rates are on the high end, but now I need to map out a fair deal for upwards of 5mm shares/month. Right now it's cheaper for me to trade through interactive brokers with their all-in rate, and I can easily funnel more volume through them as an alternative since I don't scalp much, but that's a bit apples to oranges.
 
If you're doing 100,000 a day (2 mil a month), I'd say the maximum fair market rate might be around .004 with ECN pass through, if you're capitalized and not exceptionally risky. This is based on experience from years ago though, before the churn and burn model became unprofitable.

For 5 mil a month I saw people with rates of .0025.

Keep in mind the minimum profitable rate for the firm is around .002 / sh.
 
Your fees will range from .002 / share to .004 / share.
Then you'll have whatever fees the firm decides to charge you... data fees, platform fees, etc.

Expect to pay 200 or less / month in fees on top of commissions.
 
Yikes, you guys are mentioning 2.00 / 2.50 / 4.00 per 1000 shares for those volumes.

Anyone can get 1/10th that, especially with over 1M monthly volume.
 
Quote from chowhound888:

What is the rate schedule one can expect these days for in-office trader, who doesn't do much volume but can regularly earn low/mid-5 figures monthly? I've averaged less than 2mm shares for a while now, but lately gotten into a groove and with some new strats and added size I'm expecting my volume to increase shortly.

How much leverage is profitability if at all in negotiations, given my low volume? As it stands now, I know my rates are on the high end, but now I need to map out a fair deal for upwards of 5mm shares/month. Right now it's cheaper for me to trade through interactive brokers with their all-in rate, and I can easily funnel more volume through them as an alternative since I don't scalp much, but that's a bit apples to oranges.
More...

If you can prove your trading history then you will be able to get a good deal pretty easily.

To be honest I'm not going to recommend anyone as I think that's something you should investigate yourself. Takes 10mins to find contacts numbers of a whole bunch of prop firms.

In my opinion I would be very wary of anyone recommending a firm... do your own research! I have seen a couple of posts regarding the firm I trade at which are completely untrue... however I prefer these people maintain that opinion as I rather not trade with that type of person.

Just be sure you know whether you want to put up a risk deposit and what % your looking for. Don't pay more then $0.40/1000 shares... You can pretty easily get a $0.20/1000 deal.

I forgot to mention... If your not looking for a volume based firm then your may need to give a higher %. Make sure they have a really good incentive to let you trade the way you want. Sometimes its better to avoid the super low fee firms in favor of one with a good reputation that isn't a churn&burn outfit.
 
I get .25 per 1000 for about 2 mil a min. I think they could do .20, but I guess they have to make money somewhere other than profits.
 
Quote from PropTraderMTL:


Just be sure you know whether you want to put up a risk deposit and what % your looking for. Don't pay more then $0.40/1000 shares... You can pretty easily get a $0.20/1000 deal.
More...

I second.
 
How are some people getting .20/1000 while others are paying 10x as much? How much in % are these traders giving up to get that rate? I'm looking for an in-office rate with 99% payout, using my own risk capital.
 
Quote from chowhound888:

What is the rate schedule one can expect these days for in-office trader, who doesn't do much volume but can regularly earn low/mid-5 figures monthly? I've averaged less than 2mm shares for a while now, but lately gotten into a groove and with some new strats and added size I'm expecting my volume to increase shortly.

How much leverage is profitability if at all in negotiations, given my low volume? As it stands now, I know my rates are on the high end, but now I need to map out a fair deal for upwards of 5mm shares/month. Right now it's cheaper for me to trade through interactive brokers with their all-in rate, and I can easily funnel more volume through them as an alternative since I don't scalp much, but that's a bit apples to oranges.
More...

Chow: There is easy way to do this>> They call it GOOGLE SEARCH then you find the firm you go there you ask them you compare and you choose that ez good luck
 
You must log in or register to reply here.
Back
Top