Recent Commission and Payout at Prop Firms

[RamBrito]

It s been a while that I keep up to date on the fees at different prop firms.
Could people chime in on this information so we can compare them?

From what I know, for Prop Equity Traders usually the start is 0.005 per share and the firm expect you to trade about 1 million shares per month with payout ratio of 90%.

For more experiences traders, the rates start to go down to 0.03 ,with 95% payout
In my case I paid 0.002 with payout above 90% doing above 5 million shares a month, getting leverage (Buying Power) of 40 times. Am trying to get better deal somewhere else.

The best deal I heard of 0.01 per share with 99% payout trading above 5 Million shares per month.

Anybody else has different or similar experience?
Of course other factors will affect those such as how much leverage (Buying Power) one expect. But this is usually negotiable depending on the track record and firm's available resources. Generally, equity prop firms provide 10 - 100 leverage.

Any body knows which firms provide the most leverage for experienced traders?

Thanks
RamB

 

[DiceAreCast]

Any experienced, or should I say successful, trader does not need much leverage. Ask David Tepper. By the way are you sure all your numbers sit at the right decimal separators? You may want to revisit...

It s been a while that I keep up to date on the fees at different prop firms.
Could people chime in on this information so we can compare them?

From what I know, for Prop Equity Traders usually the start is 0.005 per share and the firm expect you to trade about 1 million shares per month with payout ratio of 90%.

For more experiences traders, the rates start to go down to 0.03 ,with 95% payout
In my case I paid 0.002 with payout above 90% doing above 5 million shares a month, getting leverage (Buying Power) of 40 times. Am trying to get better deal somewhere else.

The best deal I heard of 0.01 per share with 99% payout trading above 5 Million shares per month.

Anybody else has different or similar experience?
Of course other factors will affect those such as how much leverage (Buying Power) one expect. But this is usually negotiable depending on the track record and firm's available resources. Generally, equity prop firms provide 10 - 100 leverage.

Any body knows which firms provide the most leverage for experienced traders?

Thanks
RamB

 

[RamBrito]

Yes, you are right
"For more experiences traders, the rates start to go down to 0.003".

Leverage is a function of the trading strategy. If you do lots Opening Arb or Market On Close in which you would send a bunch of orders to maybe 50 - 100 stocks at once then you will nee a great deal of Buying Power

 

[DiceAreCast]

OK, that is a fair point you made. There are a few strategies that are very capital intensive. For retail traders most are not.

Yes, you are right
"For more experiences traders, the rates start to go down to 0.003".

Leverage is a function of the trading strategy. If you do lots Opening Arb or Market On Close in which you would send a bunch of orders to maybe 50 - 100 stocks at once then you will nee a great deal of Buying Power

 

[blueraincap]

can you name some names? what major trading arcades still out there these days?

 

[7out]

During my prop days, I'd never consider a firm that wouldn't give me 0.0005 per share ($0.50 per 1000 shares) - the whole point was being able to offer shares (add liquidity) of a stock like F at same price (both bid and ask) and turn a profit. Though never got as high as 90% payout. If memory serves me correct highest payout for me was 80 or 85%.

 

[RamBrito]

Some old arcades that are still around:
Bright Trading
Schonfeld
T3
Chimera
Avatar
Great Point Capital

These caters US Equity (NYSE and NASDAQ) trading
At least they have been around since about year 2000 or before
enduring the crazy times
and still survive.

The structure of commissions and payout are also similar and competitive
If somebody has some more insights, please share the info

 

[jnbadger]

https://www.elitetrader.com/et/threads/anything-good-for-stock-trading.356889/page-2#post-5344139

See my responses to this thread. I'm too old to repeat all of it. Do your homework. Good luck.