Why would someone use the Middle Man firm?

I think I agree with most of you.

I wouldn't want to be stuck with SIPC for anything.

The Self Clearing Firms, that are dependant on Daytrading, could be in the most danger, and you could be surprised unpleasantly one day.

My opinion is there will be a lot of small firms that cater to traders, and there will be a lot of very Large Firms like Schwab and a few others that will have trouble.

Schwab has promised the moon and stars and tried to give low rates. Now they charge a 50 buck departure fee. They bought Cyber but don't really understand Daytrading.

And if you have your trading volume tank, how are you going to pay a Series 7 Rep 40 k a year to answer the phone and support trading?

The daytrading rooms, the ones that went from 100 traders to 7 traders, OUCH, they are stuck, with expensive leases, some we have seen go out already.
 
.I have to disagree the small firm goes out before the big firm(big firm can allways downsize) Small firms have to charge more because they pay for a ticket not like a self clear firm.It makes no sense to go to a little firm(unless you have good luck there).Then why leave!But to say the little firm will out last the bigger firm( self clear) makes no sense to a buisness man.Its the little fish who gets eaten by the big fish allways the little guys will go down and yes to have a firm go from 100 traders to 7 wow that is BAD.But only the storng will survive this market.The strong are the self clear firm's out there and any smart trader should be there don't listem to the brain washing of the little guys.Just like MSCO(big firm) and then FLEET(small firm)>who would you rather work for?That is my sight on this.
 
Small firm goes under, that clears say with Penson or Southwest, you do an LOA to another firm that clears with the same clearing house, and go on about your business, probably with in 24 hours.

Big Firm with Self clearing your money could be tied up for a while, and by Big you mean a Medium size Company that may not have 25 million in Insurance coverage over and above the SIPC limits.

Small firms don't need hundreds of traders to make money.

When you start having to ad staff, AAA Office Space, for Spoiled Day Traders, snacks, perks, Computers, then you are fixing your overhead high.

I have experience with Big, the larger the firm the less care is taken with little things like customer care.

You got overpaid support people that would rather not be bothered with support and customer care.

Scenario I am personally familiar with (names withheld).

Wirehouse buys a firm that started with a lot of remote Trading Accounts. Accounts that traded like maniacs.

Wirehouse adds huge Taj Mahal Call Center, hires brokers, starts 24 hour support.

Customer cannot reach the broker that always was nice on the phone.

Adds all kinds of frills and chills, and then as an after thought, hey we gotta pay for all these new services.

Raise prices of trades a little.

Next thing you know the trading volume crashes and their is no more Wirehouse Online.


Brokers on the Street with no job.

Lots of Big Wirehouse and Big Brokers have messed up this business.
 
Listen you are missing my point why go through a firm that goes through a clearing agent A.K.A penson or southwest like you said why wouldnt you go through the agent direct like penson or south west.All clearing firms are insured(sec law).The chance of having money tied up as all a lie i have traded at the little shop and had my account interest (taken) and it was on my 1099(but never got the interest in my account).That doesnt happen with a clearing agent no middle man(you are your own middle man).Traders don't need these little firms any more.Why pay the extra fees.If its 1$ a ticket and you do 1 mill shares a month that is 1k out of your pocket for what?To pay someone elses car or house payment!Unless they fully fund and give 100% payout they are useless to go through.If you like giving your money away than so be it but don't deceive the public traders they have been robbed long enough and in this tough market the extra cash could be well needed.WHY WOULD ANY USE THE MIDDLE GUY WHEN WE CAN GO DIRECT THEN?SMART $ DOESNT DO THIS.And as far as money tied up that is all a lie.But a good brain washing tool to get traders to stay.Traders should all smarten up you can get the extra cash you need that way!!!It's all about the money that is why we trade i would not take .20 to hit .10 that is what they are doing when they use THE MIDDLE MAN!!@!!!!!
 
TRADERPRO you are 100% correct i also think your right about the small firms having employees bashing the chats AGIN1415 must work for one of these firms he has taken your posts much to personally.But if he wants to give away his money(or advise others to) and trade at them let him(or them) waiste it! Ever time a trader pulls the trigger at the small firm they are giving away money and that is not the name of our game(we go to work to make money). TRADERPRO your post is helpful and the other post's are in DEFENSE.
 
Hey agin the two clearing agents are also they one the chop shop firm SONIC OVER YOUR $ uses!Do you work for them?They are slime dirt bags of the industry that the SEC has them under a very close watch!@Becarefull if you do they are going down!
 
TRADER PRO SEZ "Hey agin the two clearing agents are also they one the chop shop firm SONIC OVER YOUR $ uses!Do you work for them?

Hell no I don't work for any firm at this time.

Sorry no agenda here, just my opinion

I personally don't like big firms, I worked for one, they did stupid things from up high, THAT KILLED the BUSINESS.

Then they layoff the guys on the bottom to pay for their mistakes.

Next time I go that route it will be with a small firm that has good management.

I worked for an asshole Wirehouse.
 
I can accept that.That is corp america alot of co do that.That is the bad part of the industry.But i understand you know.I would feel the same way if it happend to me
 
I am aware of the self clearing and the advantage, and also the risk.

This is not a ONE SIZE fits all business.

So be prepared to be countered when you render an absolute.

I see the attempts at consolidation in this industry, and I understand, that there is also is an opportunity for a lot of little firms to come into the picture.
 
Like i said i totally understand your point but iam talking about the self employed trader we go were the cheaper fee is.We dont work for them(firms) we use the software to trade, right now the cheaper fee is at the self clearing firm.Not at the middle man firm.My post is to all traders useing their own money the little place is not the place for us.What you are talking about is an employee and maybe you are right go to the little firm but for a self employed go to the big house you save alot of money doing so.
 
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