Oh my good freind...don't EVER EVER take that attitude...PLEASE do me this one favor and go read the LLC agreement you signed...then ask your LLC for THEIR agreement....I can tell you first hand about an LLC that pooled all the $$ together and then when some guys took a big hit...everyone was F*cked...a couple are on this site and can tell you horror stories....and if the crap hits he fan...I can tell you once again that the regulators ( FINRA SEC) will not do crap becuase you were circumventing their PDT rules...be very careful...it can and does happen and I predict some major blow ups in the next few months
what should i be paying?
- Thread starter zmiws
- Start date
Oh my good freind...don't EVER EVER take that attitude...PLEASE do me this one favor and go read the LLC agreement you signed...then ask your LLC for THEIR agreement....I can tell you first hand about an LLC that pooled all the $$ together and then when some guys took a big hit...everyone was F*cked...a couple are on this site and can tell you horror stories....and if the crap hits he fan...I can tell you once again that the regulators ( FINRA SEC) will not do crap becuase you were circumventing their PDT rules...be very careful...it can and does happen and I predict some major blow ups in the next few months
I dont disagree that LLC's are scary, but I'm not the one who needs this advice (luckly). I work at a company that owns their own B/D, and does everything 100% legal, and is 100% registered. I dont get 100% of my pay. I pay well to be legal. See my post in "When to negotiate rates?". I think that outlines my position.
I was just talking about 'most' 20k a month type guys.
I didn't realize I would be starting such a heated debate....anyway apparently i am a fool because i pay .0035 (100% payout, 30k deposit)
we also pay ridiculous fees to locate stock to be able short (approx $1500 -2000/month). is this normal? i feel like i'm getting seriously ripped off here.
we also pay ridiculous fees to locate stock to be able short (approx $1500 -2000/month). is this normal? i feel like i'm getting seriously ripped off here.
I think the problem here is that TM is missing the point that in most cases all of the fees he is mentioning are passed through to the trader, so if the clearing rate charged by the firm to the trader is .0025, his all-in cost might be around .004 with all of the ecns, sec, dtc etc. Their overhead is limited to administrative stuff (office, staff etc.), and possibly software/connectivity if the deal includes that for the trader. It's probably foolish to mockingly say that a business model is not very profitable because you perceive the sales prices are too low. I think that a McDonald's hamburger is cheap too.
Also, the rates firms charge depends on the location; i.e. New York will have lower rates than many other parts of the country.
Also, the rates firms charge depends on the location; i.e. New York will have lower rates than many other parts of the country.
yeah, I used to get >50 signals/day in my earlier trading days too...but then I found more intelligent ways to work less and earn more...ya know?! 
Quote from Shreddog:
Ummm...that's 2M shrs / month.
There's plenty of people who do 1M+ shrs / day. Some of us get more than 5 signals /day, ya know.
TM is not missing any point...TM was merely questioning the logic of any firm giving out these rates...TM has owned and operated clearing firms and TM has seen firm after firm fail for the past 7 years giving out very generous rates...TM thinks that if firms have gone under charging 6.oo 7.oo and even 8.oo per 1000 shares then many firms trying to compete charging a mere 3.00 per 1000 may also be setting themselves up for failerure...escpecially if they are giving 100% payout....My name is TM_direct and I approve this message
you're paying $10,500-17,500 per MONTH in execution fees, before paying an additional $1-2K IN LOCATES... that's a NICE living youre making for someone who's not you.
Does anyone really understand these "fees" and how they are calculated ? I heard one prop firm owner indicate new staff traders would only be charged 25 CENTS per thousand as he indicated that was their "institutional" rate. Of course, independent traders at his firm would only get a 5 DOLLAR per thousand rate.Quote from TM_Direct:
With a 100% payout??????
no wonder theses firms all go out of business...a guy trades 5 milllion shares and his firm only makes a flat 15k??? that won't cover DTC/NSCC and Clearing fees...sheesh
Can this be right ? There's no way they can be even breaking even at 25 CENTS, right ?