Self Clearing Firms

F1 and TraderJimbo,

If you chaps know a firm that offers .004 or less, including pass-through fees (FOR TAKING LIQUIDITY) then spit it out. What is this, some kinda f__kin guessing game??? I am here to tell you that nobody charges .004 including NYSE/Nasdaq passthroughs--unless maybe you agree to trade in blocks, do 10 million shares a month, and/or pay $5000 a month in overhead.
 
I couldn't remember the name of that piker shop.
Yes, MOST of you Tradescape "traders" are an absolute joke. Keep trading WCOM and JDSU on LSPD for your one cent spread and volume rebate. Good luck getting your money when the SEC shuts down that sh**hole "firm".
 
....Inyoutty is right. I would like to know who those firms are. The firm that I worked for was not all in, the trader had to pay for his passthrus (oh, and only traded Naz. as well).

I can understand how a firm can charge zero commish and just split the net after passthrus but a all in commish of .004 cents per share including passthrus is a losing proposition by my math. Especially if traders are taking liquidity from the market constantly.
 
Like I said, I didn't work at Tradescape.

As far as the SEC shutting those guys down.... do tell. The SEC better hurry up because as I understand it Tradescape is being bought by E*Trade. Don't really know anything about Tradescape but apparently E*Trade likes them.
 
E*TRADE likes them because they apparently have no idea about how their ECN does so much volume. I don't know if you trade Nasdaq or not, but if you do then you're familiar with LSPD coming to the bid and offer on high volume/super liquid stocks. They get SOESed on one side for a block (usually they're showing 25,000) and just wait to get SOESed on the other side. The net is only .01, but they get reimbursed for adding liquidity LSPD.
Like I said, these guys aren't traders...and that bullsh** won't work when SuperMontage comes around!!!!
 
I am quite familiar with the game. I trade Naz. exclusively and I am a scalper of high volume Naz. stocks. I left my previous firm right before they got access to the LSPD ECN. I currently don't have the ability to post on LSPD and it is a major pain in the ass!

I have to respectfully disagree with you on the on the posting for 1 cent being bullsh#t. It may not be for everyone but it can provide a living, especially with the liquidity credits. What's a trader to do in these markets when there no good momo?

That type of trading is really just like a kind of private market making. From what I understand about how Supermontage will work it should end the days of the LSPD boys, will see.

But we are getting off the topic of this thread.

P.S. By the way, the Tradescape-E*Trade deal apparently doesn't include the MarketXT (LSPD) ECN. I think those jokers at LSPD are getting rich right now but will see if it lasts. :p
 
To answer SOME of the questions that were posted.. My firm trades only NAZ .......originally it was only the 100 but now we have expanded to any NAZ stock... Yes we do unspeakable amounts of volume, individually and as a whole......yes the rebates do exist for ISLD, REDI, BRUT and soon to be INCA..... but even without the rebates... you can still make some decent money.. even if you constantly are removing liquidity from the market either through SOES or ECN hits... adding the liquidity would obviously help keep your ECN fees extremely low.. but it is not necessary on every trade..Top volume producers are around 1M shares a day......lowest volume producers are around 100K a day.. not including skinny little pukes at 100share lots... I don't understand some traders .. it is like if you are not making 20K a month you aren't making enough .. bullshit... I will take many increments between that figure.. there is money to be made but I am also aware of the difficulty that lies within consistency
 
"... I don't understand some traders .. it is like if you are not making 20K a month you aren't making enough .. bullshit... I will take many increments between that figure.. there is money to be made but I am also aware of the difficulty that lies within consistency."


Someone's monthly P+L is completely irrelevant. My real point was that those guys never learn how to TRADE...and in a few months when Naz rolls out SuperMontage those guys are screwed.
I trade Naz big caps as well, however I trade size for larger moves than just the bid/offer "spread". (99% scalping, usually .05-.15 cents--or whatever the stock gives me). So it's not as if I'm ripping the scalping style, it's the fact that the only way MOST Tradescape guys make money is from the liquidity rebate.
 
Do you think you could respond to my previous post when you have a chance? Thx


Restated for your convenience...

04-20-02 11:52 PM

Don
Just being a curious George here...What kind of volume/size do your traders do who pay "less than .3 cents per share?"

According to my calculator a guy would have to average 8400 share trades to pay under .003. How many folks do you have that average 8400 shares a trade? And does this include ECN fees if applicable? All the traders I know who previously used the cap (before decimalization, Direct+, ECNs, and increased fragmentation) rarely use it now. I can't believe there are that many traders, other than position traders who are a minute minority, who still benefit from the cap. Just wondering...Thx
 
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