Tuesday, June 10, 2014

Review of online stock trading comparison::What Time Does the Bond Market Close?







Review of online stock trading comparison::What Time Does the Bond Market Close?








               Many               newcomers               to               stock               trading               cannot               tell               the               difference               between               a               proprietary               trading               firm               and               an               online               (retail)               broker.

When               deciding               to               open               an               account,               traders               make               their               comparison               of               brokers               based               on               the               relative               cost               and               the               products               offered,               but               more               often               than               not               they               fail               to               realize               that               the               products               are               not               exactly               the               same.

This               article               seeks               to               shed               light               on               the               mechanics               of               a               prop               trading               account               and               educate               traders               about               the               differences               between               the               two               options               so               that               one               can               compare               them               more               effectively.
               The               analysis               has               been               provided               in               six               key               areas:               software,               rebates,               fees,               buying               power,               education               and               short               locates               (availability               of               hard               to               borrow               securities).

These               are               the               areas               in               which               the               two               are               most               distinctively               different               and               are               rightfully               the               most               common               factors               considered               in               this               decision.

You               as               a               trader               will               place               a               different               emphasis               on               particular               categories               as               you               consider               whether               retail               or               prop               is               best               for               you.
               
               Software
               Retail
               Retail               brokers               typically               offer               the               ability               to               execute               trades               on               their               website.

Most               also               offer               their               own               trading               platform               at               a               monthly               cost               to               the               trader.

This               fee               may               be               waived               if               you               meet               their               minimum               requirements               for               account               assets.
               Prop
               A               good               prop               firm               will               offer               traders               a               choice               between               a               few               different               direct               access               routing               programs.

A               trader's               platform               provides               the               ability               to               execute               and               monitor               transactions               quickly               and               effectively.

A               proprietary               platform               will               have               direct               connectivity               to               the               exchange               matching               engine.

Hot               keys               are               also               a               must               have               for               intraday               traders               and               are               a               feature               offered               in               proprietary               software,               but               not               often               that               of               retail               firms.

Most               proprietary               trading               platforms               provide               access               to               more               in               depth               real-time               market               data               such               as               NASDAQ's               Totalview,               ARCA               Book,               NYSE               OpenBook,               BATS               and               Direct               Edge               Books,               although               some               of               this               data               may               come               at               an               additional               cost.

Greater               market               depth               and               breadth               can               assist               the               trader               in               making               better               trading               decisions               on               very               active               and               heavily               traded               securities               in               real-time.
               Rebates
               Rebates               refer               to               the               compensation               that               ECNs               provide               to               traders               who               add               liquidity               to               the               market.

Most               ECNs               give               rebates               to               traders               who               add               liquidity               and               charge               a               slightly               higher               fee               to               traders               who               remove               liquidity               from               their               market               center.

This               is               a               basic               ECN               business               model,               although               there               are               a               few               ECNs               that               are               structured               differently.
               Retail
               In               the               vast               majority               of               cases,               retail               firms               do               not               pass               on               rebates               to               their               traders.

The               online               broker               will               most               often               route               the               flow               to               a               low               cost               exclusive               destination               which               does               not               cost               extra               and               is               not               often               directly               to               an               exchange.

If               a               retail               trader               chooses               to               route               to               a               particular               ECN,               the               additional               fee               on               top               of               their               flat               commission               rate               may               be               passed               through               to               the               trader.
               Prop
               Traders               who               trade               at               a               proprietary               trading               firm               get               the               advantage               of               benefiting               from               the               widely               adopted               "taker-maker"               model               that               most               exchanges               offer.

Traders               who               add               liquidity               will               receive               rebates               for               doing               so               in               accordance               with               that               exchange's               rates               (which               can               be               as               high               as               $3/1000               shares).

This               can               be               a               substantial               source               of               revenue               for               the               prop               trader               and               will               also               influence               his/her               decision               of               which               route               to               use.
               Fees
               Retail
               The               fee               structure               for               retail               firms               will               vary               from               shop               to               shop               and               the               industry               is               highly               competitive.

One               firm               may               offer               no               account               transfer               fees               while               another               may               advertise               no               inactivity               fees.

Still               another               may               not               charge               for               wires,               but               they               may               make               this               up               in               their               commission               structure.

In               general,               retail               firms               have               a               flat,               per               trade               commission               rate               that               is               charged.

There               is               also               usually               a               software               fee               for               the               platform               unless               you               meet               certain               minimum               asset               requirements               or               if               you               are               a               very               active               trader.

Some               other               incidental               fees               that               you               may               incur               are               those               that               have               been               mentioned               above.
               Prop
               Proprietary               trading               firms               are               able               to               offer               more               competitive               commission               and               transaction               fees               than               the               online               broker.

Proprietary               firms               typically               use               a               per               share               structure               with               breakpoints               for               decreasing               your               commission               as               your               volume               increases.

This               is               often               a               direct               benefit               to               intraday               traders               who               have               a               high               number               of               trades               per               day.
               All               prop               firms               charge               a               software               or               desk               fee               which               goes               to               pay               for               the               data               and               order               entry               software               that               the               firm               uses.

Some               offer               this               software               "at               cost"               to               their               traders               and               some               charge               a               premium               on               top               of               their               cost.

The               variety               of               routes               offered               directly               affects               the               desk               fee               as               well,               so               ask               your               prospective               shop               about               the               routes               available               when               talking               about               desk               fees.

For               some               traders,               more               routes               is               more               value               added.
               Day               Trading               Buying               Power
               Retail
               In               retail               accounts,               your               buying               power               is               THE               LESSER               OF               the               equity               in               your               account               divided               by               .30               (the               30%               minimum               global               margin               requirement               for               equities)               OR               your               SMA               multiplied               by               2               (which               satisfies               the               Regulation               T               requirements               for               equity               purchases).

For               day               traders,               you               must               have               at               least               $25,000               in               equity               in               order               to               do               more               than               three               round               trips               (day               trades)               in               a               rolling               five               business               day               period               (FINRA               Rule               2520).

Outside               of               this               model,               certain               accounts               may               be               eligible               for               portfolio               margin.
               Prop
               With               a               prop               firm,               your               buying               power               is               determined               by               the               firm               you're               with               and               the               risk               capital               deposited.

Some               traders               may               be               fully               backed               by               a               firm               (true               prop)               in               which               case               they               can               expect               the               firm               to               take               a               portion               of               profits               to               compensate               for               the               risk               taken.

Many               traders               find               trading               prop               more               advantageous               as               they               can               trade               a               lot               more               capital               that               they               would               have               access               to               in               a               retail               account.
               Day               traders               with               less               than               $25,000               are               prime               clients               of               prop               firms               as               they               are               able               to               trade               freely               without               worrying               about               the               minimum               equity               requirements               enforced               by               FINRA               Rule               2520.

This               is               because               most               prop               firms               are               set               up               so               that               traders               trade               sub               accounts               of               the               firm,               but               the               firm               "hits               the               street"               as               one               large               account.
               Education
               Retail
               Many               retail               firms               have               educational               information               on               their               website.

The               breadth,               depth               and               level               of               educational               materials               vary               from               firm               to               firm.

The               material               is               usually               in               the               form               of               suggested               reading,               archived               lessons               and,               occasionally,               trading               seminars.
               Prop
               Offerings               for               training               in               the               prop               field               are               highly               sought               after.

Many               traders               who               are               beginning               their               trading               careers               look               to               prop               firms               with               advertised               training               programs.

Be               cautious               of               firms               that               charge               for               educational               classes               and               then               provide               firm               capital               for               you               to               trade.

Some               of               these               firms               are               modeled               to               generate               revenue               from               training               which               can               cause               a               conflict               of               interest               as               their               incentive               to               see               traders               last               in               the               long               run               is               greatly               reduced.

When               a               trader               joins               a               prop               firm               and               deposits               risk               capital,               all               compliant               firms               are               required               to               hold               your               deposit               for               12               months.

Afterwards,               the               trader               may               receive               his/her               deposit               back.

In               short,               be               aware               that               if               a               firm               charges               for               training               they               may               be               trying               to               avoid               the               lock               up               period               so               they               can               treat               it               as               revenue               immediately.
               Shorting/Locates
               All               traders,               prop               and               retail,               are               subject               to               Regulation               SHO               which               governs               short               selling               in               US               markets.

Traders               must               have               located               shares               that               they               wish               to               borrow               before               selling               short.

Some               stocks               may               be               on               the               threshold               list               or               "hard               to               borrow"               list               and               may               not               be               available.

This               list               is               updated               every               24               hours.
               Retail
               If               a               retail               trader               would               like               to               short               a               stock               on               the               threshold               list,               there               may               be               little               that               can               be               done               to               locate               additional               stock               intraday               and               an               opportunity               may               be               missed.
               Prop
               Traders               with               a               prop               firm               may               submit               locate               requests               before               and               during               market               hours               in               order               to               locate               additional               shares               of               stock               on               the               threshold               list.
               As               it               happens,               most               traders               begin               trading               in               retail               accounts               due               to               their               accessibility               and               pervasiveness               in               the               investing               community.

Too               many               traders               are               unaware               of               the               options               available               to               them               when               it               comes               to               cost               structure,               service               and               performance.

It               is               my               hope               that               this               article               will               dispel               some               of               the               mystery               and               stigma               from               prop.

Looking               at               these               six               areas,               you               can               better               determine               if               your               style               of               trading               is               more               suited               for               a               prop               account,               or               if               you               would               be               better               off               opening               an               account               with               a               retail               broker.
               When               choosing               a               firm               in               either               category,               research               is               paramount.

Make               sure               your               broker               or               trading               desk               has               a               sound               reputation               and               make               sure               to               ask               the               right               questions.

Talk               to               traders               or               read               reviews               on               forums               and               trading               websites.

The               better               informed               you               are               from               the               onset,               the               better               your               experience               will               be               and               the               more               comfortable               you               will               be               doing               business               with               them.
               Happy               trading.






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    Review of online brokerage accounts::What Is a Brokerage Fee? - What's Your Question?







    Review of online brokerage accounts::What Is a Brokerage Fee? - What's Your Question?








    It               might               be               time               for               a               Penny               Ponzi               Pyramid               Scheme               on               the               Internet.

    One               could               promise               to               pay               100%               interest               on               a               penny               sent               to               a               paypal               account               .

    I               once               had               a               mail               art               project               where               I               got               pennies               sent               to               me               from               all               over               the               world               .

    I               got               a               lot               of               decorated               pennies               in               the               mail               including               some               transformed               into               collage               animals               with               glued               on               features.

    The               deal               was               I               had               to               send               a               penny               back.

    Postage               is               way               too               expensive               to               mail               pennies               at               the               price               of               mailing               an               envelope.

    A               think               a               penny               pyramid               scheme               would               be               really               wonderful               If               I               could               get               it               to               work               with               paypal.

    I               called               may               mail               art               project               LL               Penny's               Pennies               from               Heaven               since               most               flew               in               air               mail.

    A               lot               of               people               sent               me               pennies,               pennies               and               more               pennies.

    Paypal               ponzi               penny               pyramid               project?

    If               I               offered               2               cents               for               every               1               cent               invested               allowing               for               people               to               deposit               only               one               cent               and               no               more               to               the               project               how               long               would               it               take               me               to               go               broke               if               I               were               honest?

    It               would               not               be               proper               ponzi               pyramiding               if               I               proposed               to               pretend               I               was               proper.

    What               fun               would               that               be?

    What               ?

    You               have               never               been               played               by               a               ponzi               pyramid               plunderer?

    Is               there               some               way               I               can               list               that               on               Ebay?

    I               did               sell               Lehman               Brothers               on               ebay               but               am               still               not               aware               that               I               ever               got               paid.

    I               saw               some               small               town               in               Pennsylvania               was               selling               the               right               to               name               streets               in               the               town               on               ebay               and               had               plenty               of               bidders.

    Why               is               Portland               bothering               with               Chavez               Street               when               it               could               put               streets               names               up               for               sale               in               a               bid               crazy               world               of               ebay?

    Some               Idiot               could               put               up               an               "               advertise               here               "               ebay               auction               for               the               right               to               put               an               epitaph               on               people               tomb               stones               .

    I               can               see               it               now.

    "Joe               Smo               1978-2008               --Coke               is               the               real               thing"               carved               on               a               granite               tomb               stone."               It               could               even               have               a               carved               picture               of               the               classic               coke               bottle.

    That               would               not               compare               with               selling               a               service               generating               100%               interest               returns               on               a               penny.

    The               problem               with               most               pyramids               schemes               is               they               really               are               not               what               they               are               advertised               to               be,               The               promoter               usually               intercepts               the               puffed               up               pool               of               cash               long               before               the               final               investors               have               a               chance               to               get               their               100%               profit.

    It               reminds               me               of               the               Bernanke/               Paulson               bail               out               plans               where               the               700               billion               went               into               banks               that               immediately               stopped               lending               money               as               soon               as               they               were               solvent               again               with               that               new               money.

    That               is               where               I               got               the               idea               to               sell               Lehman               brothers.

    I               drew               up               a               certificate               and               mailed               it.

    i               suppose               the               buyer               ,               who               many               never               have               paid               me               might               resell               it?

    I               made               a               big               round               hole               in               the               certificate               with               a               giant               hole               punch               to               demonstrate               the               value               of               the               underlying               assets.
                   You               can't               beat               the               federal               government               for               running               a               ponzi               scheme               with               it's               social               security               promises               and               no               underlying               assets....not               even               Bernie               Madoff               can               compete               with               a               multi-trillion               dollar               ponzi               scheme               like               that               one.
                   There               really               needs               to               be               a               really               good               inexpensive               ponzi               pyramid               scheme               online               anyone               can               afford               to               loose               a               few               cents               in.

    I               was               thinking               of               creating               just               such               a               site               but               suspect               it               may               be               illegal.

    Here               is               how               it               might               work:               Anyone               could               send               a               penny               to               my               special               designated               ponzi               penny               paypal               account.

    Every               fourth               penny               contributed               would               immediately               be               compensated               with               two               cents               back               the               other               two               cents               would               be               retained               by               the               site               when               the               site               has               retained               ten               dollars               in               cents               it               will               automatically               pay               the               person               paying               in               1               cent               2               dollars               and               retain               the               8               dollars               for               my               charity               called               Ducks               for               A               Bad               Cause.

    If               you               lived               in               Portland               long               enough               you               might               know               something               about               Ducks               For               A               Bad               Cause               or               may               even               own               one               of               our               fund               raising               ducks?

    Never               mind               what               it               is               .

    It               is               a               charitable               bad               cause.

    When               the               pot               is               paid               out,               it               starts               again               automatically.

    The               paypal               based               site               would               be               blind               so               that               those               sending               in               their               cents               would               not               know               what               number               of               cents               proceeds               their               contribution.

    That               sounds               like               a               pretty               good               ponzi               scheme               whose               time               has               come.

    I               would               even               be               a               better               scam               if               the               big               payout               was               10               cents               when               the               pot               finally               reached               100               bucks               paying               $99.90               to               my               private               account.

    Every               fourth               person               would               get               2               cents               for               1               in               this               scam               and               other               three               would               just               loose               a               stupid               cent.

    The               really               luck               person               would               get               ten               times               their               money.
                   Double               Your               Money!

    Oh               yeah.
                   Another               great               site               would               be               an               INTERNET               coin               flipping               site               where               you               could               bet               on               heads               or               tails               with               a               cent.

    If               it               were               heads               the               site               would               automatically               pay               you               back               two               cents               or               give               you               two               additional               coin               flips.

    If               the               coin               flip               turned               out               to               be               tails               it               would               debit               your               paypal               account               for               an               extra               cent               above               your               original               ante.

    Roughly,               if               it               were               a               fair               online               coin               flip,               every               other               flip               would               offer               a               50/50               chance               of               winning               two               cents               or               loosing               two               cents.
                   After               writing               this               I               finally               got               around               to               taking               advantage               of               the               free               $25               to               fund               a               FXCM               micro               forex               currency               trading               account               on               the               CNBC               trading               contest               site.

    I               quickly               lost               most               of               the               25               dollars               having               no               idea               what               I               was               doing               .

    I               bet               their               money               on               trading               buying               and               selling               yen               and               euro               us               dollar               contracts.

    I               started               out               OK               turning               25               dollars               into               32               or               35               and               then               continually               bet               wrong               .

    After               4               mini               margin               calls               I               ended               up               with               less               than               $4               in               the               account               and               it               is               too               little               to               trade               with               so               I               think               I               am               done               with               currency               trading               now?

    Trying               to               predict               short               term               market               movements               in               currency               exchange               is               harder               than               predicting               the               outcome               of               flipping               a               coin               even               with               real               time               charts               ticking               in               front               of               you.

    It               is               worth               trying               so               long               as               they               are               offering               free               funded               accounts               of               $25               each.

    It               is               a               great               real               life               link               to               the               real               time               currency               exchange               that               comes               in               the               download.

    I               sill               have               $3-$4               in               the               account               an               am               tempted               to               try               again               becuse               i               did               win               for               a               while               playing               the               game               but               then               again               probably               not.

    Too               bad               they               just               don't               refund               the               free               money               they               give               you               so               you               can               try               again.

    Otherwise               they               do               have               practice               accounts               that               may               not               require               any               cash               of               any               sort               to               try               it.
                   If               the               FXCM               micro               forex               currency               offer               is               still               available               go               to               cnbc.com               and               find               the               million               dollar               trading               contest,               Unfortunately               it               is               not               a               tiny               ponzi               penny               scam               but               It               can               be               funded               for               a               few               dollars               for               the               fun               of               loosing               money               and               the               system               is               devised               such               that               you               get               margin               calls               that               wipe               you               out               long               before               you               have               to               pay               in               additional               funds               to               cover               losses.

    I               do               admit               that               the               idea               of               leverage               trading               of               currencies               in               this               manner               makes               no               sense               to               me.

    A               better               account               might               be               a               Zacco               no               fee               brokerage               account               where               if               you               have               enough               assets               you               can               trade               tiny               penny               stocks               with               no               commissions.

    I               am               proud               to               have               purchased               6               shares               of               Sirius               Radio               corporation               on               the               site               for               15               cents               each               just               to               see               it               could               be               done               with               no               commission-               If               I               am               wrong               about               the               investment               of               about               90               cents               then               the               US               Pentagon               or               one               of               the               major               political               parties               will               end               up               owning               yet               another               satellite               communications               company               paid               for               by               private               investors               and               my               losses               might               be               90               cents!

    Satellite               radio               is               the               future               of               radio               even               if               the               company               does               go               broke               .

    So               yes               you               can               loose               money               reading               this               and               it               is               all               your               fault               if               you               do.






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    Review of top stock brokers::Tips for Choosing an Online Stockbroker







    Review of top stock brokers::Tips for Choosing an Online Stockbroker








    The               economy's               hit               a               rough               patch,               and               you're               trying               to               stay               the               course               with               your               small               business.

    It's               perfectly               understandable,               right?

    You               need               to               save               money.

    You               need               to               make               money.

    It               isn't               complicated,               but               it's               hard               for               your               family.

    It's               hard               for               you.

    And               it's               hard               for               your               business.

    There               are               only               two               ways               to               do               this.

    Either               increase               your               income,               or               decrease               your               expenses.

    If               we               could               just               snap               our               fingers               and               make               more               money,               we'd               be               snapping               and               dancing               all               night               long,               trust               me.

    We'd               all               make               a               night               of               it               together.

    There               would               be               nothing               more               powerful               and               optimistic               than               a               group               of               entrepreneurs               filling               a               dance               hall               snapping               their               fingers               and               swing               dancing.

    It               hasn't               happened               yet,               and               the               stock               market's               currently               taking               a               beating               -               we               haven't               seen               the               stock               brokers               tap               dancing               in               a               long               time,               either.

    Until               that               day               comes               again,               we've               got               to               be               realistic               -               instead               of               focusing               on               a               drastic               increase               of               income,               we've               got               to               decrease               our               expenses.
                   Lucky               for               us,               our               work               from               home               jobs               come               without               the               cash               for               commuting               or               the               expensive               wardrobe.

    However,               it's               best               to               stop               ordering               from               Amazon               and               start               taking               trips               to               the               local               library               for               a               while.

    That's               right               -               curtail               some               expenses               you               really               don't               need!

    No               more               takeout               on               Fridays,               either.

    Try               to               start               eating               only               what's               in               your               pantry.

    These               things               add               up,               and               as               a               home-based               business,               especially               a               sole               proprietor,               your               domestic               budget               and               your               business               budget               walk               hand               in               hand.
                   Don't               upgrade               software               every               chance               you               get.

    In               face,               start               looking               into               open               source               software               -               such               as               Open               Office,               which               are               compatible               and               always               free,               instead               of               using               the               big               boys               such               as               Microsoft.

    These               programs               have               some               great               features               such               as               saving               in               many               file               formats               -               from               .doc               to               .pdf,               and               they               are               relatively               easy               to               use.

    And,               did               I               mention               -               they're               free?
                   Use               effective               advertising               and               marketing               -               and               don't               fall               for               every               "new               advertising               method"               that               comes               out.

    There               are               hundreds               of               "pay               per               click"               gurus               out               there               that               will               wipe               your               credit               cards               clean               with               Google               AdWords               using               every               keyword               imaginable               to               get               clicks               to               your               website               -               but               will               those               clicks               convert?

    Don't               waste               money               on               getting               clicks               -               use               common               sense               on               what               has               worked               for               yourself               and               others.

    Marketing               your               services               is               more               important               that               marketing               your               website               -               so               make               sure               your               advertising               actually               reaches               the               people               you               are               selling               to.

    Don't               go               for               clicks               -               go               for               customers.
                   Take               full               advantage               of               free               advertising               to               build               the               business               and               the               credibility.

    There               are               free               ways               to               advertise               that               are               almost               as               effective               as               PPC               advertising               and               paid-for               advertising,               including               writing               articles               for               other               publications,               starting               blogs,               posting               to               others               forums,               and               soliciting               reviews               of               the               services               and               products               you               sell.

    Don't               spend               money               on               advertising               that               doesn't               work               when               you               can               simply               build               a               reputation               that               stands.
                   Remember               -               keep               things               simple               in               a               small               business               -               and               look               at               the               big               picture.

    If               you               overextend               your               funds,               there               won't               be               any               money               left               for               you               tomorrow.

    You               cant               to               keep               cash               flowing               in,               not               out               -               so               look               at               what               you               have               to               gain               by               every               dollar               you               put               out,               realistically.

    Don't               look               at               what               your               competitor               is               doing,               but               the               guys               that               are               two               steps               above               you               -               would               they               see               a               return               on               the               same               thing?

    Did               they               do               something               similar               in               the               past?

    Target's               top               guns               have               written               plenty               of               articles               and               sent               out               plenty               of               press               releases,               newsletters,               and               other               marketing               material,               but               they               waited               a               few               years               before               they               invested               in               Google               AdWords               -               and               they               were               already               a               household               name.

    So               why               should               YOU               skip               the               traditional               advertising               phase?






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