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What Is Rebate Trading?
- Thread starter ZapCoffee
- Start date
Quote from londonkid:
Here I have corrected your post for accuracy.
1. 'They will charge traders really cheap commissions, maybe even 30cents per 1000 shares'
This should read maybe even 20c.
2. 'The Firm keep half or more of those profits.'
This should read the firm keep 20% to 25% of the profits depending on volume.
3. 'Traders can lose a few $1000 per day, and still make money for the Firm net, even some for themselves.'
This should read, it is possible for a trader to finish gross negative but net rebate positive however most target gross positive net positive by also capturing the spread along the way.
Apart from that it is all good.
london
+1 except that I will take it a step further and say that most prop firms are paying in the range of 12-18c per thousand shares and rebate trading at 30c per thousand is a really good algo because 30c per thousand is expensive.
If you pay 30c per thousand just know that your prop firm is making a 15c rip on you so don't split a dime with them.
Quote from WinstonTJ:
+1 except that I will take it a step further and say that most prop firms are paying in the range of 12-18c per thousand shares and rebate trading at 30c per thousand is a really good algo because 30c per thousand is expensive.
If you pay 30c per thousand just know that your prop firm is making a 15c rip on you so don't split a dime with them.
Hey Winston
If you can get 30c per 1000 and no split then please spill who is offering it as I am in!
London
Quote from WinstonTJ:
+1 except that I will take it a step further and say that most prop firms are paying in the range of 12-18c per thousand shares and rebate trading at 30c per thousand is a really good algo because 30c per thousand is expensive.
If you pay 30c per thousand just know that your prop firm is making a 15c rip on you so don't split a dime with them.
Are you insinuating that Sir Don Bright is overcharging his arcade traders?
He said 3 mil is a good rate. I believe Don Bright. He can't possibly rip anybody off. Say it ain't so. My heart will be broken. No, it will be shattered. I will cry two rivers for a month.
I was very interested in his $50k elite trader trading courses just so I could speak like an elite trader. I don't really care if I can trade like one. That would be asking for too much.
Quote from SteveNYC:
Are you insinuating that Sir Don Bright is overcharging his arcade traders?
He said 3 mil is a good rate. I believe Don Bright. He can't possibly rip anybody off. Say it ain't so. My heart will be broken. No, it will be shattered. I will cry two rivers for a month.
I was very interested in his $50k elite trader trading courses just so I could speak like an elite trader. I don't really care if I can trade like one. That would be asking for too much.
No I don't think Don is in this space. His traders trade pairs, openings and other methods which require the ability to overnight and use big leverage. I think $2 per 1000 is nearer the mark if you are not doing rebate style.
Winston: How much and how long would it take to setup a 'mini-prop' llc in the US to handle 5-10 foreign 'prop' clients doing only SPY and options on SPY?. ES and other futures too, if possible. Zero client business with US persons.Quote from WinstonTJ:
+1 except that I will take it a step further and say that most prop firms are paying in the range of 12-18c per thousand shares and rebate trading at 30c per thousand is a really good algo because 30c per thousand is expensive.
If you pay 30c per thousand just know that your prop firm is making a 15c rip on you so don't split a dime with them.
Idea is to lower credit risk by cuasi-self-clearing. I.e.: The 5-10 'prop' clients would directly or indirectly control the llc. All legal and compliant please.
the lowest ES comms I have seen are 96c a side for exchange members through deep discount trading. I am sure others are getting lower. If I could get $1 RT's on the ES all in I would love to have a go at scalping it, would be happy to pay away 10-20% in a split to a prop. Any got this then please chime in.
gunna start another thread on the lowest ES commission
gunna start another thread on the lowest ES commission
Example of rabate(credit) trading:
http://www.youtube.com/watch?v=9ZkxHKNjjN8
http://www.youtube.com/watch?v=9ZkxHKNjjN8