which broker to choose?

I don't believe direct-access is the right solution for an execution-newbie. Given that your time frames are relatively long (i.e. more than minutes :) ), I expect that you are looking for relatively large moves (10% or more), and execution cost may not be all that significant. For the size you are talking about, particularly down the road, it seems like you need a more investment-related broker, like Schwab, Prudential, Merrill, etc. as opposed to one that caters to high-frequency traders. As you mentioned, for a sizable account, you have security issues as well, the easiest solution for which is a segregated account, which I don't think you're going to get from any less than a tier-1 firm.

At first, I thought you might be talking about penny stocks with the size you were quoting, but apparently not. We all have different bankrolls, I guess. 50K shares x $50 stock = $2.5M. 0.0025% of capital implies an account size of $100B. Are you just yanking us or are you investing the wealth of the entire Saudi royal family? :)
 
50K shares x $50 stock = $2.5M. 0.0025% of capital implies an account size of $100B.
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that's not how I count it.

let's say you've bought 50000 shares and ready to loose 1 point. That is your stop-loss width = 1 point.

in the case when your stop-loss is triggered you loose $50000 (assuming away commissions and slippage).

that makes your account a lot less than the wealth of Saudi Royal Family :)
 
I don't believe direct-access is the right solution for an execution-newbie. Given that your time frames are relatively long (i.e. more than minutes ), I expect that you are looking for relatively large moves (10% or more), and execution cost may not be all that significant. For the size you are talking about, particularly down the road, it seems like you need a more investment-related broker, like Schwab, Prudential, Merrill, etc. as opposed to one that caters to high-frequency traders. As you mentioned, for a sizable account, you have security issues as well, the easiest solution for which is a segregated account, which I don't think you're going to get from any less than a tier-1 firm.
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thank you for suggestions.

I hope I will not be an execution-newbie forever
:)

I am basically looking for a broker that is not deprived of any modern features. who knows what one's needs will be as time goes by. I always get stuff with spare or additional options in it. Just in case I will require some of those options in the future.:) I am ready to overpay for the "Just in case scenario"

same with brokers :) Direct access is an additional option and I might need it :)

Basically no problem - I might switch brokers when I feel I need direct access but what I want to do is try to pick one of the best ones and, if with the time I am satisfied, try to establish long term relationship with it.
 
yeah, i'm new and i plan on starting out trading 200-500 lot spoo iron condor's, i thought about single lot but a 200 lot is only about .0001% of capital. I also plan to start 50 car s&p futures. Can anyone recommend a good broker to get my feet wet with this kind of action?
 
trading 200-500 lot spoo iron condor's, i thought about single lot but a 200 lot is only about .0001% of capital. I also plan to start 50 car s&p futures.
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I'll get there. Don't worry.
 
Tradestation or IB perhaps.

Spoo = ?

Quote from volatilitypimp:

yeah, i'm new and i plan on starting out trading 200-500 lot spoo iron condor's, i thought about single lot but a 200 lot is only about .0001% of capital. I also plan to start 50 car s&p futures. Can anyone recommend a good broker to get my feet wet with this kind of action?
More...
 
S&P 500, SPX, SPY,SP6H. I'm under the impression spoo is slang for any or all of these? I could be wrong. I'm actually still paper trading myself. The more I study equity and index options, the more I realize how much more there is to learn, before I put real capital at risk. My current methodology employs mostly calendar, double calendar, double diagonal, straddle strangle swap spreads on equities, and selling iron condor's on the indexes. I occasionally try speculative strategies, buy(and hope) calls(puts), vertical, front and backspreads. For instance, I had put a 65-70 bull call(10 lot) on Guidant that I closed yesterday for a sweet max paper profit, as I saw implied volatility collapse and stock price gap up, woohoo! I look for 'cheap' and 'underpriced' IV when putting on my non-directional trades(calendars)-my mean reversion tactic if you will, since calendars are vega +. unfortunately I still don't feel I'm ready to 'go live' yet. Besides, I still feel I need to get a better grasp on NBBO, getting filled on mid-prices, exercise implications,etc. Paul Tudor Jones said 95% of traders are not profitable,& I'm determined not to become apart of that statistic. I also study Bruce Kovner, buzzy schwartz, Ed Seykota and other methodologies. I also value many opinions on this board. Anyone who may have additional techniques for an up and coming option spread trader?
 
Look at my Journal thread here under Journals: SPX Credit Spread Trader

All we tlak about is spreads on the S&P. Well we mostly talk but sometimes we tlak... (must be Klingon typo...)




Quote from volatilitypimp:

S&P 500, SPX, SPY,SP6H. I'm under the impression spoo is slang for any or all of these? I could be wrong. I'm actually still paper trading myself. The more I study equity and index options, the more I realize how much more there is to learn, before I put real capital at risk. My current methodology employs mostly calendar, double calendar, double diagonal, straddle strangle swap spreads on equities, and selling iron condor's on the indexes. I occasionally try speculative strategies, buy(and hope) calls(puts), vertical, front and backspreads. For instance, I had put a 65-70 bull call(10 lot) on Guidant that I closed yesterday for a sweet max paper profit, as I saw implied volatility collapse and stock price gap up, woohoo! I look for 'cheap' and 'underpriced' IV when putting on my non-directional trades(calendars)-my mean reversion tactic if you will, since calendars are vega +. unfortunately I still don't feel I'm ready to 'go live' yet. Besides, I still feel I need to get a better grasp on NBBO, getting filled on mid-prices, exercise implications,etc. Paul Tudor Jones said 95% of traders are not profitable,& I'm determined not to become apart of that statistic. I also study Bruce Kovner, buzzy schwartz, Ed Seykota and other methodologies. I also value many opinions on this board. Anyone who may have additional techniques for an up and coming option spread trader?
More...
 
conbar,

so 50k shares @ a $1 loss p/share = $50k, right? You'll not be risking more than 0.0025% on any given trade right? So thats $2,000,000,000 in your account? You should just by a brokerage firm, and reap profits from all of our commissions. ;)

I suspect that you meant 0.25% (represented on a calculator as 0.0025) but that would still mean you'll have a $20,000,000 account then?

Can I have a job? I could help you learn all kinds of things.

Read my user name, I'm not being sarcastic. I would really like to interview for a job. I can teach you all kinds of things about execution, in exchange for, say, access to 5% - 10% of your account. I could bring in 25% - 40% returns, and show you exactly how to do the same. I'll pay myself from the returns on the usage of the $1,000,000 - $2,000,000 of your account. I won't cost you a dime. Hell, I'll pay YOU 25% of MY returns. No kidding, I'm serious. IM or email me.
 
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