The New Brokerage Model....coming soon?
- Thread starter Vaquero
- Start date
- Status
Overnight/swing trades allowed or ONLY daytrades?
Thank you for your responses....
As you all know...the industry has had the cart before the horse
for a long time...Think of it this way...what percentage of your upfront capital was paid upfront before you made any money...?
Example: An aspiring trader who goes to a training school pays $2000 for two days to a week...Pays $100 per month for software...Pays .01 per share all in...The trader trades five 400 share lots per day...That's $2000+$1200+$9600=$12,800....
Therefore the trader pays $12,800/$25,000=51.2% of his capital before he/she makes a dime....
THIS IS THE REAL REASON SO MANY ASPIRING TRADERS FAIL....
The new business model allows for a $1000 to $5000 up front cost and charges .001 per share which is approximately 4% of the capital utilized...
The other reason is know how...learning from somebody that offers his/her blotter every day...with the charts and other reasons why they made the trade....Students follow...forming their confidence and capabilities starting with simulation and small lots....
THIS IS THE OTHER MAJOR REASON TRADERS FAIL...THEY PAY FOR TRADING SERVICES THAT HAVE NO HARD PROOF THAT THEY ARE VALID...AND NOTICE HOW THEY PAY FOR THESE SERVICES...ALL UP FRONT....seminars,cds,chat,books,tapes...etc....IF A FIRM OR SERVICE CANNOT SHOW YOU DAILY BLOTTERS..IT IS VERY LIKELY THEY HAVE NO VALID PERFORMANCE EXAMPLES...
The new model's revenue stream is based on profits...15% to the firm...85% to the trader...
Again...thank you all for your responses...and again there are no barriers to entry for this business...I encourage all daytrading firms to go in this direction....What can happen of course is that some "front end" oriented firm will figure some way to try to stop or impede the competition....
As you all know...the industry has had the cart before the horse
for a long time...Think of it this way...what percentage of your upfront capital was paid upfront before you made any money...?
Example: An aspiring trader who goes to a training school pays $2000 for two days to a week...Pays $100 per month for software...Pays .01 per share all in...The trader trades five 400 share lots per day...That's $2000+$1200+$9600=$12,800....
Therefore the trader pays $12,800/$25,000=51.2% of his capital before he/she makes a dime....
THIS IS THE REAL REASON SO MANY ASPIRING TRADERS FAIL....
The new business model allows for a $1000 to $5000 up front cost and charges .001 per share which is approximately 4% of the capital utilized...
The other reason is know how...learning from somebody that offers his/her blotter every day...with the charts and other reasons why they made the trade....Students follow...forming their confidence and capabilities starting with simulation and small lots....
THIS IS THE OTHER MAJOR REASON TRADERS FAIL...THEY PAY FOR TRADING SERVICES THAT HAVE NO HARD PROOF THAT THEY ARE VALID...AND NOTICE HOW THEY PAY FOR THESE SERVICES...ALL UP FRONT....seminars,cds,chat,books,tapes...etc....IF A FIRM OR SERVICE CANNOT SHOW YOU DAILY BLOTTERS..IT IS VERY LIKELY THEY HAVE NO VALID PERFORMANCE EXAMPLES...
The new model's revenue stream is based on profits...15% to the firm...85% to the trader...
Again...thank you all for your responses...and again there are no barriers to entry for this business...I encourage all daytrading firms to go in this direction....What can happen of course is that some "front end" oriented firm will figure some way to try to stop or impede the competition....
Count me in 
In our Corporate headquarters (where you can get the best teaching, coaching, and career role models), we do something very similar for our local interns anyway.
$5,000 (includes the training fee).
Licensing fees may cost extra, maybe not (depends on whether you're licensed or not).
Trade small lots until you get better.
Either you are successful or you are not.
Bonus: We are in a true 24 hour city, so many can get part time jobs to pay bills while they are in training.
Penny per share, no minimums, no ECn'S.
I would make room for up to 10 people to start trading in February. School starts January 12th.
Send PM's or Emails....I don't want to banter about on the open thread.
Don
$5,000 (includes the training fee).
Licensing fees may cost extra, maybe not (depends on whether you're licensed or not).
Trade small lots until you get better.
Either you are successful or you are not.
Bonus: We are in a true 24 hour city, so many can get part time jobs to pay bills while they are in training.
Penny per share, no minimums, no ECn'S.
I would make room for up to 10 people to start trading in February. School starts January 12th.
Send PM's or Emails....I don't want to banter about on the open thread.
Don
Hi Vaquero,
What about futures?
Thank you.
What about futures?
Thank you.
Thank you for your responses...
Again...there are no barriers to entry to this business model...however interested firms should be aware that .001 is the commission level in this model which includes the rebates...
Models reflective of the standard .01 are ten times higher and are not supportive of the new model ...in that they would still be deemed "up front" firms....
Example: Trader trades 4 times 400 shares per day would generate $7680 in annual commissions in the old model...whereas in the new model the annual commissions would be $768....
The new model seeks its profits from profits......
Again...there are no barriers to entry to this business model...however interested firms should be aware that .001 is the commission level in this model which includes the rebates...
Models reflective of the standard .01 are ten times higher and are not supportive of the new model ...in that they would still be deemed "up front" firms....
Example: Trader trades 4 times 400 shares per day would generate $7680 in annual commissions in the old model...whereas in the new model the annual commissions would be $768....
The new model seeks its profits from profits......
- Status