Prop trading/trading arcade business model

I'm currently at a prop house (more arcade) and the business model is somewhat unusual, to me anyway. The company charges us extra on top of what the exchange charges per round turn we do, I've estimated this to be $0.75 per round turn with an emphasis on giving a rebate for doing more round turns in a month e.g. at 5k, 10k, 15k and 20k. It seems without these extra costs my monthly p&l like would be almost 5 times better. Anyway, is this a usual setup for a prop house? I enjoy trading but I feel like I'm being bent over by the company here. If it's just this company I will leave but if all are the same then I will find another way to trade.

 

That's normal business model for large group of firms. They usualy don't want you to see how much they earn so they receive they share in form of rabate from exchange. I'm pretty sure thats not 0,75$. I'll bet thats more like 0,07$ but your case can be different. There are a lot of firms and a lot of business models. Some firms focus only on making high volume traders that cover costs, some other focus on developing talent. In my experience kind of firms that focus on volume trading can also be a good learning envoirement. You can make a lot of 'tries', get to know a lot of markets, a lot of volatilities, different price actions and better understand why price sometimes do what it does. You can reject the noise and get the essence.

 

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