Wisdom trading / RJ'O Bryan

R

Rachmaninov

I am currently trading with IB but I want a broker with more markets (Winnipeg, Minneapolis, TOCOM etc.)

Wisdom trading seems to be good and they use RJ'O Bryan as a clearer (they are just introducing broker)

Any information on Wisdom/RJ'O ?
 
Rachmaninov said:
I am currently trading with IB but I want a broker with more markets (Winnipeg, Minneapolis, TOCOM etc.)

Wisdom trading seems to be good and they use RJ'O Bryan as a clearer (they are just introducing broker)

Any information on Wisdom/RJ'O ?
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Wisdom is a solid firm and seem to have a good reputation in the industry. I guess my question would be why do you need an introducing broker? This is just an extra layer of cost for no reason. Why not just go direct to the FCM to eliminate unnecessary layers and cost. If you want to be with RJO, just go to RJOFutures and open an account directly. No need for an introducing broker.
 
CliffordHarris said:
Wisdom is a solid firm and seem to have a good reputation in the industry. I guess my question would be why do you need an introducing broker? This is just an extra layer of cost for no reason. Why not just go direct to the FCM to eliminate unnecessary layers and cost. If you want to be with RJO, just go to RJOFutures and open an account directly. No need for an introducing broker.
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Not true. IBs have cost structure just like an internal sales in an FCM.
If you have one IB in Wyoming, that does 1 lot per month, than you are right.
Most successful IBs are extremely competative.
 
RobertG said:
Not true. IBs have cost structure just like an internal sales in an FCM.
If you have one IB in Wyoming, that does 1 lot per month, than you are right.
Most successful IBs are extremely competative.
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For some IBs you are certainly correct. I guess in 2015 it just seems like the middleman is out. Amazon does not have introducing brokers they are the direct selling agent. You go to BestBuy or their website. Everything is direct to the producer online. Why is the futures brokerage world stuck in the mind set that more layers are better then less. Some IBs add consulting value others however are just collecting the vig in the middle and there is really no room left for that in an industry that continues to have decreasing prices.
 
CliffordHarris said:
For some IBs you are certainly correct. I guess in 2015 it just seems like the middleman is out. Amazon does not have introducing brokers they are the direct selling agent. You go to BestBuy or their website. Everything is direct to the producer online. Why is the futures brokerage world stuck in the mind set that more layers are better then less. Some IBs add consulting value others however are just collecting the vig in the middle and there is really no room left for that in an industry that continues to have decreasing prices.
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IBs are not middle man, and they never were. They are an entity that just eats into the same pie that the FCM would have shared all by itself if you traded directly with them. Specifically to your example, both Amazon and BestBuy employ what is called affiliate sales, were you can become a salesman for them charging the same prices they do while they giving you a cut.
This means that they factor into their sales price another cost basis whether an affiliate comes along to sell their product or not. FCMs are the same way, they are no cheaper than an IB, and depending on your level of trading, an IB via the FCM could negotiate prices down to pennies.

Personally, FCMs are so huge nowadays, that I find them to be inefficient, unless you have a dedicated rep who is commissions driven and wants to maintain your business. I am with an IB and I don't pay anymore than anyone who is directly with an FCM.
 
I personally don't see how any IB will survive the next 7-10 years unless they add real consulting (trade or hedge) value. Just my opinion as I view most of them as middlemen collecting a vig.
 
CliffordHarris said:
I personally don't see how any IB will survive the next 7-10 years unless they add real consulting (trade or hedge) value. Just my opinion as I view most of them as middlemen collecting a vig.
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7-10 years is some random number you chose based on....?
Opinions have to be based on some foundation of reality and not just a feel.
IBs as an entity and a business will adopt and adjust just like they did so far. Those who can't will fall just like any other business in the world where prices and technology are a factor.

Prices are very low as it is, but if you actually look at the new landscape of IBs, you would see rather an innovative approach to technology, speed and products that behemoths like FCM would not even think of. Many add lots of value.

Let's end this here because everyone of your threads on this topic so far is the same.
 
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