Advantages of Prop Trading Firm vs. Standard Brokers. To get more information on Prop Trading Firms simply click on the hyper link in this sentence.

1.) Starting Capital For Day Trading Capabilities

– Only $5,000 required to have the ability to do an unlimited number of Day Trades vs. Sec Required $25,000 to participate daily in the market

-Let’s take a scenario into consideration for a moment. Let’s assume you save up the 25k to begin day trading with your current broker. What happens if you saved up $25,000 exactly and have a losing trade your first time out and drop $500? If you don’t make that up on your next 3 trades then your account will get locked and you will no longer be able to participate in day trading. When you fell the pressure like that it can cause you to trade with “Scared Money,” which will make it even harder to get the money back in your account.

2.) Fee Structure

– $700 a month with no commissions for unlimited Day Trades vs. $5-$10 every time you buy and sell.

-Now I want to take a look at another scenario and break down the cost for you. WTC Trading total cost (Excluding ECN which could actually net positive for you) is about $40 a day. I will go with a lower number for commissions and assume best case scenario which would be around $5, then I will use half the amount of full turns our average day trader turns a day, which is 5 (half of 10). So doing best case scenario you are at $50 a day in commissions vs a flat $40. Now let’s say you have a standard day of trading (10 full turns), again using the lower commission structure, Now you are at $100 a day vs. $40 with wtc trading.

One more quick scenario about the Fees vs. the Rip-off standard brokers charge. This is something that doesn’t really even make sense with a regular broker. Let’s assume you feel okay about a trade and grab 300 shares, but you want to scale out of the trade to protect profits adjusting your stop higher each time. Your goal is to sell 100 shares every time it moves up .10 cents and adjust your stop 3 cents higher every time. This will allow you to maximize possibilities of making money while protecting profits, giving the trade room to breathe, and gaining the most in a conservative manner.

OPEN: 300 Shares of GE Buy at 14.10
Sell 100 at 14.20 and adjust stop to 14.13
Sell 100 at 14.30 and adjust stop to 14.16
CLOSE: Sell 100 at 14.40 to close position.
Scottrade total Cost w/ $7 commissions = xx $28 or 46% of your Total Profit Every TIME xx
WTC Trading w/ 0 Commissions = $60 and 0% of your profit,
a net $20 paying for the $40 in fees

3.) Buying Power

– 10 x 1 Buying Power with $5,000 gets a minimum of $50,000 vs. 4 x1 with $25k in your account and 2x 1 without 25k on margin.

-This is key when it comes to day trading. With $10,000 in your account you are going to get as much buying power with somebody that has $25,000 in there account. Enough said on this one.

4.)Direct Market Access

-Smart order routing technology vs. I hope I get filled quick…..
-Quick fills vs. hoping the broker executes the trade fast enough to get a decent price. Not much else needed to explain this….

5.) Great Short Inventory
Most highly traded stocks avialable in short inventory, which includes stocks under $1.00! vs. No shorts under $5.00 with Scottrade and No Shorts under $3.00 with Zecco.

-This is one of the best features and probably the most overlooked for the average trader. Want to talk about taking a walk in the park to make money trading in this market? Only way is to get short on junk you can get your hands on. Period…. When the market breadth is getting as bad as 5-10 losers for every 1 gainer…. The only way the odds are in your favor is if your short.

Quick Scenario, We keep calling PEIX and PCBC short in our chat room because they are junk stocks. PCBC is under .80 and there is no issues getting filled, while everyone in our chat room that is not using is not able to participate in cake walk trade with us. Company is losing $10.00 a share and is currently trading under .80 cents.

PCBC – So let’s get this straight, how easy is that…. Somebody invest $800 and they will lose $10,000?
Short or Long?
The answer is short, but the question is “Does your broker have shares available?“

Want unlimited Day Trades, $50,000 Buying Power, No Commissions with ONLY $5,000 Starting Capital?
We can make it happen.

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