question about prop firm fees

T

thisguy

Can someone give me a sense of what kinds of fees are competitive at various prop shops?

I'm particularly interested in an all-inclusive rate (brokerage and clearing) with rebate pass-through/market-taking charges separate OR included.

I know some people are paying $0.0025/share just for clearing with some prop shops which seems outrageous. I would think with rebate pass-through/market-taking charges separate, brokerage and clearing should be down to $0.0008/share or $0.0005/share.

Am I incorrect on what the low end would be?

Thanks.
 
Quote from thisguy:


I would think with rebate pass-through/market-taking charges separate, brokerage and clearing should be down to $0.0008/share or $0.0005/share.

Am I incorrect on what the low end would be?
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<b>Double</b> that range and you <i>may</i> have found the extreme low end for direct access prop. Where's your information coming from?

Of course, if you want a bucket-shop broker that'll route your order through God-Knows-Where, there's always Zecco trading; 100% 'Free'!
 
Been quoted 5 mils/share for execution with a major DMA broker. I don't think they have low clearing arrangements with a major clearing firm/investment bank.

Thought there must be an option at or under 10 mils/share.
 
hi.

forget for a moment about the best deals,

what i'm interested is: what is the average price, fair price, for day trading 250k shares a month.

all included (clearing or whatever...)

i'd like to open an account somewhere and i need a base to measure the offer i'm receiving...

thanks
 
Compare to IB's 1/2 cent per share all in, or .35 unbundled. Good luck getting better than that at a prop firm on 250,000 shrs/mo
 
Quote from roadstar4:

hi.

forget for a moment about the best deals,

what i'm interested is: what is the average price, fair price, for day trading 250k shares a month.

all included (clearing or whatever...)

i'd like to open an account somewhere and i need a base to measure the offer i'm receiving...

thanks
More...

Ok, assuming we're speaking of reputable shops that aren't going to run off to Thailand and blow all your funds on under-age hookers, I'd put the fair/average range at $0.0035 to $0.005/share, with all ECN rebates/charges passed thru to you.
(Keep in mind that 250k shares/month is considered pretty small size. Get a lot bigger, and you'll get that range cut in half.)
 
Quote from lescor:

Compare to IB's 1/2 cent per share all in, or .35 unbundled. Good luck getting better than that at a prop firm on 250,000 shrs/mo
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Indeed Corey.

Unless you are trading minimum 2-3 million shares/month or you need BP for some reason, you would be hard pressed to beat IB. Not that they dont have room to improve.

Never mind potential license issues. Just have a back up broker and dual wan router for your connection and you're good to go for a long time.

Shopping for brokers is like shopping diets. Find out if the diet you have works first. Once you drop some weight and see that it works, why change?
 
Some clown at tuco insulted me with a .0025 offer for well over 1 mil.Said one of the owners makes over 100k a month trading. I trade mostly the es but i've been doing some 10k-40k blocks in the spy to run a comparison against the es and tuco offers some nice margin. Maybe i'll stop into there san diego office and have a chat with the owner and show him my statements so he knows i'm serious.
 
Quote from ESSTUD:

Some clown at tuco insulted me with a .0025 offer for well over 1 mil.Said one of the owners makes over 100k a month trading. I trade mostly the es but i've been doing some 10k-40k blocks in the spy to run a comparison against the es and tuco offers some nice margin. Maybe i'll stop into there san diego office and have a chat with the owner and show him my statements so he knows i'm serious.
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A million shares a month, and $0.0025/share?
If I understood you correctly, that's not an insult- it's a gift!

Keep in mind that whatever you save on commissions by switching from ES to SPY, you'll pay many times that amount in higher taxes.
 
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