Trading Arcades have had their day

Originally Posted by Parky

This is amazing, anyone would think Trader Clearing Alliance, Griffen etc had never happened.
Simple guys you get what you pay for, you want cheap you get rubbish, the trick is the word professional, a professional trading room as opposed to arcades.
Look back at the threads on this very website about TCA, the "knowledgeable" were falling over themselves to say TCA meant the demise of trading rooms, here was a "non profit" making organisation run by traders for traders. Even then those with a few brain cells were saying in your dreams, by default if you are not making money you cannot build up capital and all you can do is increase risk. we were told, Risk? Risk systems negate risk! To those who do not know there backside from there elbow maybe. Sure enough it imploded doing just what everyone said it would have to, use one traders money to support others, no profits, no capital, no company.
The same questions apply, how big is the balance sheet of the company you have your account with? Are they FSA regulated? What Risk do they have on intraday and overnight, if you do not get good answers and you are with them then basically you deserve what you will get.
As for trading from home? Some can do it some cannot, the usual tendency is to overtrade due to boredom or under trade because of distractions, a professional trading room for decent traders is a good tool and let’s face it, if you worry about £ 500 here or there you hardly qualify as a decent trader anyway.
Have professional trading rooms had their day? No ours has filled over the last 18 months with traders from big Banks and Institutions who earn good money and would laugh at the idea and our biggest two competitors have also been seeing large influxes so I would say the market is healthy.

Originally Posted by Parky

This is amazing, anyone would think Trader Clearing Alliance, Griffen etc had never happened.
Simple guys you get what you pay for, you want cheap you get rubbish, the trick is the word professional, a professional trading room as opposed to arcades.
Look back at the threads on this very website about TCA, the "knowledgeable" were falling over themselves to say TCA meant the demise of trading rooms, here was a "non profit" making organisation run by traders for traders. Even then those with a few brain cells were saying in your dreams, by default if you are not making money you cannot build up capital and all you can do is increase risk. we were told, Risk? Risk systems negate risk! To those who do not know there backside from there elbow maybe. Sure enough it imploded doing just what everyone said it would have to, use one traders money to support others, no profits, no capital, no company.
The same questions apply, how big is the balance sheet of the company you have your account with? Are they FSA regulated? What Risk do they have on intraday and overnight, if you do not get good answers and you are with them then basically you deserve what you will get.
As for trading from home? Some can do it some cannot, the usual tendency is to overtrade due to boredom or under trade because of distractions, a professional trading room for decent traders is a good tool and let’s face it, if you worry about £ 500 here or there you hardly qualify as a decent trader anyway.
Have professional trading rooms had their day? No ours has filled over the last 18 months with traders from big Banks and Institutions who earn good money and would laugh at the idea and our biggest two competitors have also been seeing large influxes so I would say the market is healthy.

Originally Posted by Parky

I suggest you check out TCA's history they did that at the death when they were already in trouble, TCA started as collective of traders who decided Arcades were greedy and if the traders all got together and cut out the middle man so kind of trading nirvana would occur. It failed, what you are talking about is the death throes when they were desperate and started a trainee trader program to get cash in.

Originally Posted by Parky

Just21,
Earlier in the thread a collective was exactly what was suggested.
In any case even this warehouse arrangement would be inferior from a point of view of who looks after the lines? who looks after the systems? Do you have dedicated IT staff and Risk management staff that professional trading rooms have as part of the service?
If you are all trading over the internet then you are already at a disadvantage to a fixed line solution, sure your call but you also have resilience issues.
Do you have resilience in terms of UPS power if the lights go out for example?
When 9/11 kicked off the internet ground to a halt and brokers were buried with phones ringing off the walls, how big are you potential losses? What we are talking about is quality, if you are happy with second best then fine but all I am saying is you get what you pay for simple. I would have thought if you are trading for a living you would want the best tools, the best front end trading systems, the fastest lines, Co-Location of servers, dedicated IT staff, resilience, back up lines, servers and gateways etc. For that you have to pay.