Large Volume Trading

[charlesdwright]

What does it take to become a member?

It isn't necessary that you yourself be a member, you can also work for a member firm. that's what prop desks do: they leverage a firm's advantages, putting traders to work for some split of profits.

Hence my remarks about a "legitimate" firm. the less reputable a firm, the more likely they'll find creative ways to tax you with fees. [incidentally, where money is concerned, "legitimate" is a fluid term. There is a story floating around about one very well known trader and author who, when his bonus was given a decimillion dollar haircut by his even more well-known firm, overturned a large table and stormed out].

Memberships at certain commodities exchanges are affordable, but commodities aren't equities.

The point of membership, either by employment or ownership, is the cost advantage. The trade has given up its body in the move to go electronic, it's not about to give up its soul -- its cost advantage.

That's why the MERC stock has done what it has. It's slashed its overhead by going electronic. More of the access fees go to the bottom line.

Thanks for all the replies. They have been extremely informative. Would dealing with shares in excess of 50k give me liquidity issues in the NASDAQ?

That depends on the name. Not in the least, in the well known equities. In fact, NASDAQ volume of Listed shares surpassed NYSE volume of Listed shares in a recent month.