5 things your prop trading firm doesn't want you to know
DESCRIPTION
You can get rebates through ECNs You can negotiate for better rates Your trade reports are crucial You can request free trials You should refrain from overtrading and more!TRANSCRIPT
5 Things Your Current Prop Trading Firm Doesn’t Want You to Know
How trustworthy is your prop trading firm? You may want to ask yourself if your current firm is trying to hide any of the following things from
you. If they are, consider looking for a new firm.
1 – You Can Get Rebates Through ECNs. Electronic communication networks
(ECNs) facilitate the trading of financial products outside of the exchange. It’s possible to
get trader rebates up to $0.003 per share by using an ECN, but
some prop firms keep this a secret to claim the rebates for
themselves.
2 – You Should Refrain from Overtrading. Some
investment firms will do anything to get you to trade
more. Why? Because the more you trade, the more
money they make. Overtrading is a big problem among day traders and it’s
easier if you don’t have huge costs to overcome along the way. Remember, overtrading
leads to bankruptcy.
3 – You Can Negotiate Better Rates. Some investment firms are all about maximizing profits and if they already have a large user base, they can get away with charging more
than their competitors. Keep in mind that investment firms rarely advertise the ability to negotiate rates down, but it is possible, especially if you trade in large volume or
frequency.
4 – You Can Request Free Trials. A trial is crucial in order to help you build your confidence with the trading
platform. If the firm you are interested in does not offer a trial, ask for one anyway. Many prop firms offer free trials in order to hook you in and then sell to you at a later date. Most trials last only a few weeks and some prop firms don’t provide a trial at all.
5 – Your Trade Reports Are Crucial. Many prop firms
discourage the use of trade reports and
portfolio reviews because the technology can be
expensive. A good prop firm will realize that these techniques are crucial for evaluating performance and will make sure their
clients have these powerful tools.
Unfortunately, there are a lot of unscrupulous
investment firms out there. The good news is that there are plenty of alternatives.
Want to learn more about prop trading firms? Contact us today to
speak with a friendly Nonko representative.
www.nonkotrading.com