Retail vs Prop

[Don Bright]

Quote from EricP:

Sounds like an excellent rate for short balances. Thanks for answering my question.

In terms of 'derogatory statements', I'll just point out that my long posting history on ET will reflect that I'm not a Bright Trading 'hater'. To the contrary, I think that it is one of the better prop firms in the business (although I'm not an expert on the prop offerings out there). This is why it always hits a nerve on me when you post intentionally misleading and incorrect statements (such as "we pay interest on short balances, retail do not"). These not only mislead ET readers but, I believe, do a disservice to Bright Trading.

Next time, please state "we pay interest on short balances, while many/most retail do not", and I'll be a happy camper. Otherwise, I'll continue to post a correction for the benefit of the ET community, some of whom may be unaware of the offerings of retail firms. Seems like now, I'm the one having to "correct erroneous statements made by ET'ers" (i.e. you). Oh well, life goes on.

P.S. Still confused... You knew that statement was misleading/incorrect. A large share of those reading your post knew it was incorrect. Why did you post it? I can't believe it was just an unintentional oversight, as you've done the identical thing before. It just doesn't make sense... Whatever...

I still don't know exactly what you mean...if you want "most don't pay" vs. a simple "don't pay" - that's fine....I checked Interactive Brokers (prevalent on ET)...and got this:

Calculate interest on short stock value 70,000

Tier Balance Cash Interest Calculation
< 80,000 70,000 0.00 (70,000 x 0/360)
> 80,000 0.00 0.00
Short credit interest received 0.00

http://individuals.interactivebrokers.com/en/accounts/fees/interestMethods.php?ib_entity=llc

Which shows zero. There may be some brokers who pay short stock interest, but I have not seen any that start with small balances.

Let me know which broker pays interest from the first dollar, I would like to know. Some may do it on high balance accounts. I would appreciate a link, some of my traders might have an interest in them.

???


Don