Prop firms with rates at or under .30/1000

K

kmgilroy89

Do these exist anymore? I have a scalping strategy I've developed through the years, but it requires very low rates. It's low risk, but uses high volume and would probably be unprofitable at the current standard prop firm rates of 3/1000. I have not been able to test it, because of the $25,000 requirement and sim trading a strategy like this would be completely bullshit. However, I believe it can make over $1000/day with an experienced trader and it can potentially be automated, making the earning potential much, much higher.
 
1245 said:
I would say that 3 mils is not possible at a JBO Prop firm for both clearing and execution.
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I'm talking about clearing only. Not exchange/SEC fees. What really matters is the total cost of the trade (in and out). Ideally this total would average under 3/10th of a cent for each share traded based on smart order routing. I'm not sure that the trades would have an expected value of even half a cent. It's a volume based strategy.
 
I say for clearing and execution because unless they are members of the exchanges, they have to use someone's routes for DMA. That has a cost too. I'm not referring to regulatory fees and maker/taker debits and credits. At 3 mils, if you trade 10mm shares, that is $3000/month in gross commission before their cost. Not going to happen.
 
1245 said:
I say for clearing and execution because unless they are members of the exchanges, they have to use someone's routes for DMA. That has a cost too. I'm not referring to regulatory fees and maker/taker debits and credits. At 3 mils, if you trade 10mm shares, that is $3000/month in gross commission before their cost. Not going to happen.
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WTS offered those rates before they close up. So would I have to pitch to a top firm like Jane Street or one of the elite HFT firms?
 
And then they closed up. I'm just trying to help. Anyone that offers you that rate will not make money and your deposit will be at risk. To get that rate on your own, you will either need to be a BD yourself doing a lot of volume or find a firm like ETC that will provide a flat rate per month. You will still have to do high volume to make that work. And, ETC is having problems with that model too. Their capital is now below $2mm and they owe over $1mm in fines.

How much volume are you talking about/month?
 
1245 said:
And then they closed up. I'm just trying to help. Anyone that offers you that rate will not make money and your deposit will be at risk. To get that rate on your own, you will either need to be a BD yourself doing a lot of volume or find a firm like ETC that will provide a flat rate per month. You will still have to do high volume to make that work. And, ETC is having problems with that model too. Their capital is now below $2mm and they owe over $1mm in fines.

How much volume are you talking about/month?
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It should be about a million a day, so figure around 20 million.
 
That is good volume, but not enough to get you your rate anywhere I know except maybe a true prop firm that is trading 500mm shares/month or more and going direct.
 
1245 said:
To get that rate on your own, you will either need to be a BD yourself doing a lot of volume or find a firm like ETC that will provide a flat rate per month.
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1234,

Parton my ignorance, but what's the full name of ETC? Do you know of anyone else who still offers a flat rate/month for US equities, and if so at what rate?

Thanks
 
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