What is the advantage of trading through a broker dealer? Are you trading in very large lot sizes if so at what lot size does it make sense to use one?
Thanks.
Thanks.
No advantage, LOL ! No choice, compliance does not allow me to have outside accounts.
L
lukas
Does anyone here scalp the markets? Would you say 20-30% of gross PnL going to commissions is acceptable for such a trader?
Why not ? I prefer having a method that produces consistent profits and giving 50% in commissions to my broker, than to have an unreliable, volatile system while only paying 5% in commissions. As long as you are net profitable, it is all good, or no ? Of course I would always look to get my costs down. Many ways for a scalper to do this.
Definitely as a scalper. On my best years, around 10-20% was going to commissions + exchange fees. On my worst year( 2012 ), I paid close to 50%. I was trading around 1000 lots per day, had reduced IIP fees and looking for 1-2 ticks profits.
IMO it's still better to look for high alpha trades where you can be profitable on non-member rates but at the same time, the guys making a real killing are the one trying some kind of market making strategies trading 10000+ lots per day averaging 0.2 ticks per trade...
I am assuming your question is commissions and fee's as a percentage of net profit (P minus L). I day trade mostly equity futures, averaging about 6 trades per day on the ES and twice that on the NQ although any given day can be twice that. I own a lifetime platform license so my commissions and fees average around 11-12% of net profit which is close to the entirety of my business expenses.
What instruments were you trading? What's IIP? On stocks and currency I find it really hard to overcome commission for faster trading.