Wednesday, September 7, 2011

JC Trading Group....

JC Trading Group were very nice and helpful in their responses to my queries. Unlike several of the other firms I researched, they don't require Series 7 licensing, but they do require the U4 background check. This is because they are a CBSX broker/dealer. They are primarily interested in big ticket orders and as many fills as possible. They profit primarily from execution costs. That being said, their rates are reasonable comparative to the industry (.0045/.0055 per share for Lightspeed platform), and will fluctuate based on your volume and, Like Echo, their customer service was far better than Bright's. They do have two divisions within their firm. A pro-trading division and a non-pro one. The pro-division  requires 6 months of profitable track record where the non-pro division doesn't require that. Their traders use Laser, Sterling Pro Trader and Lightspeed, depending how much you are willing to pay for data on your platform. They do offer remote trading. They do have full ECN rebate pass-through, which for high-frequency traders is a good thing. It does require a minimum of $5000 deposit, which will give you $100,000 buying power for day trades. From chatting with several of their traders, it seems that most people are happy with them and their services. It seems that withdrawing profits is quick and painless and some level of support is available. Everyone did warn that it's not the best place for newbies as there is not much in place to assist with a learning curve, and trying to learn this profession on the fly is a very bumpy ride typically. Depending on your situation, you will get all or most of the profit splits. Part of it depends on your track record and how much of the firm's capital you are using.

Conclusion: In dealing with JC Trading and some of their traders, the response was for the most part very positive. In a similar fashion to Echo, they are a true-blue prop firm that wants their traders to make money, but their primary focus is on generating tickets and high volume of shares traded. Their technology, costs and their business operations seems to be among the more superior in their peer group. They do allow for more inexperienced traders to join them, but it becomes quite a bit more cost-prohibitive. I do feel like they are limited in the fact that they really only trade stock, but part of this is my own personal desires. I like to have some training and community available and I want to be able to trade all asset classes. Still, within their niche, I think they seem like a good choice. I give them a rating of 4 out of 5 stars.