starting a trading group?

E

Elitist Trader

Just say a bunch of friends and I all trade from home with our respective brokers, how could I join us all together with the same broker to allow us to receive better volume discounts?
Really just looking for the easiest, quickest, and cheapest way to do this.

I'm not located in the US
 
Figure out how much volume/PnL you're going to be doing as a group and start calling up all the different shops. Negotiate. If you're international, you may want to try some of the Canadian firms.
 
Elitist, are you looking to combine your group's accounts into one when you make the move, or keep separate accounts? Just curious, haven't heard much about how trading groups operate, not sure what options there might be, etc.
 
Quote from drp7804:

Elitist, are you looking to combine your group's accounts into one when you make the move, or keep separate accounts? Just curious, haven't heard much about how trading groups operate, not sure what options there might be, etc.
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I would keep them separate, so that each person has total control over their account
 
Quote from Elitist Trader:

Just say a bunch of friends and I all trade from home with our respective brokers, how could I join us all together with the same broker to allow us to receive better volume discounts?
More...

I think that would be tough. We retails are peanuts. Put 100 peanuts together... it is still peanuts.

What kind of rates are you looking for in improvement (your volume discount)?
 
Quote from Elitist Trader:

Just say a bunch of friends and I all trade from home with our respective brokers, how could I join us all together with the same broker to allow us to receive better volume discounts?
Really just looking for the easiest, quickest, and cheapest way to do this.

I'm not located in the US
More...

Perhaps you can try opening an "investment club" account at a major broker with your group of friends and get volume discounts based on your pooled capital. I believe TDAmeritrade is one that offers such accounts.

You state "I'm not located in the US" which could be interpreted as you not being a U.S. citizen, or a U.S. citizen living overseas. The rules and paperwork are most likely different, especially if you're going with a U.S. broker.

Search "investment club" on the web to find more info. Good luck.
 
Quote from Bolimomo:

I think that would be tough. We retails are peanuts. Put 100 peanuts together... it is still peanuts.

What kind of rates are you looking for in improvement (your volume discount)?
More...

I'm not talking about mums and dads doing this in their spare time. Im talking about HF traders doing this full time.

$2/RT is ideal, but Im not sure that will be possible without leasing a seat. which brings up another problem, how do you share a seat lease?
 
As trader in a prop firm, you follow the firm rules which for the most part benefit owner. But if traders get together create a firm which benefit to all members, It will be a revolution for the prop firm industry.

Why there aren't any group out there operate with this model? when you heard the firm claimed to have 100 or 1000 traders...ever wonder why so many willing to work for few?

Don Bright...jump in any time. Your insight is well appreciated!
 
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