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what should i be paying?
- Thread starter zmiws
- Start date
pete's right anyone doing any vol and paying over .002 is a fool and getting raped. now here's the nightmare scnerio for an llc.. the markets grinding up all day long and 90% of there traders are long running at 20-1 margin and a 9-11 type event hits the tape. bamm a crossed market and nobody gets out. the llc is toast as they're at 4-1 are 6-1.could easily happen
Quote from TM_Direct:
sure...theres a variety of fees clearin firms pass back to the B/D....ACT fees, SEC fees, DTC fees, NSCC fees, Bank fees ( becuase the clearing firm is really the one extending the credit not the b/d itself.)...In addition DTC will be doing away with shortly the batched trade and billing clearing firms by execution ( they may have already started this)..then there is the software fees of the CLEARING firm...each trade uploaded comes with a price tag...most clearing firms use a system like Sunguard (Penson) or SIS, BETA and CSS ( SWS)....theres a lot more but thats a good start for now...do some of the huge instituions make profits? of course...but if you name isn't IB and your handing out .003 per share with a 100% payout...you won't last.
I guess you're running a small B/D or something ? The bigger you are, the better clearing deal you can get (and compress trades etc)
Quote from TM_Direct:
Recently, Bear Sterns and Goldman Sachs announced that their hedge funds had suffered combined losses of almost 9 BILLION dollars. The mangers of these funds are some of the best and brightest on Wall street.
Just because they work at Bear and Goldman does not make them the "best and brightest".
They have more inside information than you can imagine and some of them still can't turn a profit. Doesn't seem like they're too bright to me.
I've seen guys who could barely spell S.A.T. absolutely destroy the market month in and month out. I'll take them over some guy who got into Harvard and Goldman through his family's connections.
Quote from Szeven:
Ya but i cant call bear sterns, or goldman and get a prop deal. Thats comparing apples to mexican jumping beans.
Im still not sure we are talking about the same things. The fact remains you can call any LLC and get .002 / 100% on 5million shares a month.
no....you can't....but you can get in with a LLC that clears them.....Hey, im not telling anyone to say no to .003 ...if you can get it..GREAT!!..Im just telling you that the majority of firms offering this cannot and will not make money...its just a matter of time...just like when people were getting 2.5% mortgages and interest only loans and all the other sub prime B.S.....mark my words though...the hedge fund blow out will be astronomical
Quote from TM_Direct:
something like that....more to the point, i was the Clearing house
Ok. So I assume you ran a relatively small clearing firm and are now making the assumption that the bigger clearing firms cant hand out better deals to their customers than a relatively small firm could ?
All I know is that 0.003 in this business isn't a VERY good deal at all, you can get better easily with 100% payout, so SOMETHING must be wrong in your assumptions I guess.
Quote from TM_Direct:
something like that....more to the point, i was the Clearing house
Just stop, you keep making yourself look like the bigger fool.
Mnx, monstercat and Pete are right, you are wrong. The prop firm offers .002-.00225 to the sub LLC which then offers .003 to the trader when it comes to those volumes. Almost every cost is passed through to the trader, and then some. The prop firm pays .001 and sometimes below that, at least with NYSE. Naz is higher.
Quote from TM_Direct:
no....you can't....but you can get in with a LLC that clears them.....Hey, im not telling anyone to say no to .003 ...if you can get it..GREAT!!..Im just telling you that the majority of firms offering this cannot and will not make money...its just a matter of time...just like when people were getting 2.5% mortgages and interest only loans and all the other sub prime B.S.....mark my words though...the hedge fund blow out will be astronomical
You have absolutely no idea what you're talking about.
LOL, a firm charging .003 not making money. LOLOLOLOL.
I guess of the last five different firms I've looked at in the past 6 weeks, all of which offered me below .003 off the bat with no negotiation on 1m shares, through four different clearing firms, all those firms are not making any money and they're trying to do me a service by naggingly trying to solicit my business. Please.
This is not 1998. Times have changed. Clearing costs are extremely low, extremely.
Why are you trying to spread misinformation? One of two things could be going on here.
Either you've been brainwashed by the firm you're trading with into believing that their costs are so high that they giving you whatever deal they give you they're doing you a favor, when in actuality they're laughing all the way to the bank, OR you run a prop group and have traders who read this board, and thus you have to run outside and scream that the sky is green and hold green pieces of construction paper over their heads because they're looking up and starting to see blue... and if they see the blue you would actually have to provide a useful service to the world to make you're living.
If your intentions are benign, then I'm sorry for my rude inferences, however you're spreading information that's simply not true - information with no basis in reality - and if it were information about, say, how you think a stock trades, or where the economy is going, I wouldn't bother to call you out, but it's misinformation that potentially takes money out of the pockets of the small guy trying to make it in this world, so if that small guy is reading this, he's gotta know the truth.
just a simple question from a future's trader!
If I switch to equities, I wouldn't want to be trading more than 10k blocks since it'll get picked up as a big block and difficult to scalp and I'd choose a stock about $25 and the above combination with 5 round trips a day would generate about 1.1mil shares a month(my signal averages about 5 times a day)!
How does a trader generate 5mil a month then?
thanks for a proper response.
If I switch to equities, I wouldn't want to be trading more than 10k blocks since it'll get picked up as a big block and difficult to scalp and I'd choose a stock about $25 and the above combination with 5 round trips a day would generate about 1.1mil shares a month(my signal averages about 5 times a day)!
How does a trader generate 5mil a month then?
thanks for a proper response.