Rebates Trading ?

B

bluematrix

I think one has to register as a dealer to qualify for rebates from ECNs is this correct?

Are there any platforms that allow you to collect rebates for adding liquidity?

e.g. I know interactive brokers matches some orders to ECNs through its 'SMART' technology but how can one qualify for rebates?

what are the requirements?

thanks
 
You need a broker that will offer you Direct Market Access (DMA) and a pass though of maker-taker fees. It is not really the platform that enables this but the broker you use and the route they offer you. Very few retail brokers offer DMA because they make more money by directing your orders to a dark pool. Many institutional brokers and prop firms offer DMA.

1245
 
Quote from 1245:

You need a broker that will offer you Direct Market Access (DMA) and a pass though of maker-taker fees. It is not really the platform that enables this but the broker you use and the route they offer you. Very few retail brokers offer DMA because they make more money by directing your orders to a dark pool. Many institutional brokers and prop firms offer DMA.

1245
More...

Please give example of DMA retail brokers. Thanks.

I guess all prop firms like bright, echo would be offering DMA.
 
I am lost in this forum, I trade with SpeedTrader and they pass rebates back my way. My per share price is $.0033, ARCA and INCA pass back .02 so my total per share is usually $.0013 per share. 2000 shares of stock cost me $2.60 which is far better than Trade Stations $0.06 or $12.00 for 2000 shares plus another $6 bucks for ECN fees making TradeStation charge you $18 per trade each way!


I don't have any kinda of license, maybe you all are talking about collecting the entire rebate of .003 from ARCA and Nasdaq and .004 from EDGE or EDGX and BRUT that are higher. As usual I am probably mixed up.


The best deal I had before was with a tiny broker who allowed me to trade up to 50,000 and get ECN Rebates. Using their In-House ECN TRAC, I got back .0027 rebate, commission was $12.00 or $10.00 if I recollect right.


50,000 x $.0027 or 100,000 round trip was a rebate of $270.00, I never took liquidity. Jerry Putnam from ARCA would send me this really cool "Cutter and Buck" shirts trying to get me to use ARCA. I had to choose the broker give me a higher share on ARCA, ARCA paid me back $0.0023 and I liked ARCA because TRAC would end up "Locking Markets" and sitting forever! Finally, on the Nasdaq Level 2 if the stock was really moving, someone using another ECN that was not set to "Keep in in the Book" mode would finally buy my shares.



Watch out with ECN rebate trading, it's not very hard to get in trouble and accused of "Churning Volume" or "Painting the Tape".
 
Quote from bluematrix:

I think one has to register as a dealer to qualify for rebates from ECNs is this correct?

Are there any platforms that allow you to collect rebates for adding liquidity?

e.g. I know interactive brokers matches some orders to ECNs through its 'SMART' technology but how can one qualify for rebates?

what are the requirements?

thanks
More...

If you choose the cost+ commission schedule at IB, all rebates will be credited to your account.
 
Here's the Rebate and Taking Liquidity Schedule, you don't need a License!

$/shr- $/shr+
ARCA 0 0 0.003 -0.002 0.004 N
ARCAE 0 0 0.003 -0.002 0.003 N
ARCAL 0 0 0.003 -0.002 0.003 N
ARCALR 0 0 0.003 0.003 0.003 N
ARCAQ 0 0 0.003 -0.002 0.003 N
ARCAQR 0 0 0.003 0.003 0.003 N
ARCAR 0 0 0.003 0.003 0.003 N
BATS 0 0 0.003 -0.002 0.003 N
BATSR 0 0 0.003 0.003 0.003 N
BATSY 0 0 -0.0002 0.0003 0.0029 N
CBSX 0 0 -0.0005 0.0018 0.004 N
EDGA 0 0 -0.0004 0.0006 0.003 N
EDGX 0 0 0.003 -0.0023 0.003 N
EDGXE 0 0 0.003 -0.0023 0.003 N
EDGXL 0 0 0.003 -0.0023 0.004 N
EDGXQ 0 0 0.003 -0.0023 0.004 N
FLOW 0 0 0.0029 0 0.003 N
NQBX 0 0 -0.0005 0.0018 0.003 N
NYFX 0 0 0.009 0.00075 0.003 N
NYFXR 0 0 0.003 0.003 0.003 N
XDOT 0 0 0.003 -0.001 0.0035 N

UATS 0 0 0.001 0.001 0.001 N
TSX 0 0 0.005 0.005 0.005 N
TRST 0 0 0.003 -0.001 0.003 N
TRACQR 0 0 0.003 -0.002 0.003 N
TRACQ 0 0 0.003 -0.002 0.003 N
TEST 0 0 0 0 0 N
SURG 0 0 0 0 0 N
SMART 0 0 0.0025 0.0025 0.0025 N
SGMA 0 0 0.00125 0.00125 0.00125 N
SBSH 0.5 0 0 0 0 N
REDI 0 0 0.002 0.002 0.002 N
QUAX 0 0 0.0031 -0.0009 0.0031 N
PSFL 0 0 0.0028 0 0.0028 N
PROP 0 0 0.001 0.001 0.001 N
POST 0 0 0 0 0 N
PLUS 0 0 0.002 0.002 0.001 N
PHONE 0 0 0 0 0 N
PDQB 0 0 0 0 0 N
PDQ 0 0 0.0015 0.0015 0.0015 N
OESO 0 0 0.0025 0.0025 0.0025 N
NYSE 0 0 0.005 -0.001 0.005 N
NSX 0 0 0.003 0.003 0.003 N
MURF 0 0 0.001 0.001 0.001 N
MSCO 0 0 0.001 0.001 0.001 N
MPSG 0 0 0.001 0.001 0.001 N
MILL 0 0 0.001 0.001 0.001 N
MDPT 0 0 0.0017 0.0017 0.0017 N
LQBK 0 0 0.001 0.001 0.001 N
LEVL 0 0 0.001 0.001 0.001 N
LAMPU 0 0 0 0 0.001 N
LAMPQ 0 0 0.001 0.001 0.001 N
LAMPL 0 0 0.001 0.001 0.001 N
LAMPE 0 0 0.001 0.001 0.001 N
LAMP 0 0 0.001 0.001 0.001 N
KNIT 0 0 0.0015 0.0015 0.0015 N
JSOR 0 0 0.003 0.002 0.003 N
ITGI 0 0 0 0 0 N
ISE 0 0 1 1 1 N
INETR 0 0 0.004 0.004 0.004 N
INETQ 0 0 0.003 -0.002 0.004 N
INETLR 0 0 0.004 0.004 0.004 N
INETL 0 0 0.003 -0.002 0.004 N
INETE 0 0 0.003 -0.002 0.004 N
INETD 0 0 0.003 0.003 0.004 N
ILLU 0 0 0.003 -0.001 0.003 N
GECO 0 0 0 0 0 N
FLEX 0 0 0.001 0.001 0.001 N
EDGXU 0 0 0.003 0.003 0.003 N
EDGXR 0 0 0.003 0.003 0.003 N
EDGXQR 0 0 0.003 0.003 0.003 N
EDGXLR 0 0 0.003 0.003 0.003 N
EDGE 0 0 0.003 0 0.003 N
EDGAR 0 0 0.003 0.003 0.003 N
DRUS 0 0 0.003 0.001 0.003 N
DBAX 0 0 0.001 0.001 0.001 N
CVGX 0 0 0.001 0.001 0.001 N
CROSS 0 0 0.0005 0.0005 0.0005 N
COWX 0 0 0 0 0 N
CHCA 0 0 0.003 0.003 0.003 N
CDRG 0 0 0.003 0.003 0.003 N
CBSXR 0 0 0.004 0.004 0.004 N
CBSXI 0 0 0.0018 0.0018 0.004 N
CBO 0 0 1 1 1 N
BSX 0 0 0.0005 0.0005 0.0005 N
BELZ 0 0 0.0025 -0.0009 0.003 N
BATSYR 0 0 0.0029 0.0029 0.0029 N
BARC 0 0 0.001 0.001 0.001 N
AUTO 0 0 0.001 0.001 0.001 N
ARCAUR 0 0 0.004 0.004 0.004 N
ARCAU 0 0 0.003 0.003 0.004 N
ALGP 0 0 0 0 0 N
ALGO 0 0 0.001 0.001 0.003 N
ALGD 0 0 0.001 0.001 0.003 N
 
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