When deciding which brokerage to use, most people focus on round turn cost, platform and data feed in that order. The fact is that between the major discount brokerages, there really isn’t much to differentiate between them. A lot of them approach the marketplace with a “churn and burn” attitude. They believe that most people will blow their accounts and so they focus on getting as many customers as possible, knowing that most won’t survive. This is why some brokerages offer really low margins that cause traders to risk too much compared to their account size. The trader blows up the account but the brokerage gets the commissions whilst they do that. Lovely.
Stage 5 Trading has a very different model. Their focus, on a best effort basis, is to help their clients understand and respect risk with the intention to keep them from overtrading and depleting their account to the point where they can’t trade anymore. We are not aware of any other brokerage who is approaching traders from this, more sustainable, aspect of providing support. Stage 5 believe that a more sustainable approach for their clients is to focus on risk management. They offer a structured community and learning environment that tries to focus on a executing a disciplined trading plan through a solid execution platform at competitive prices and with a strong experienced support team.
The trader development program at Stage 5 Trading is designed and executed by FuturesTrader71, a professional full-time futures trader and a member of CBOT. He’s also very well known in the trading community. For more on FT71, take a look here: http://www.futurestrader71.com/
FT71 communicates with Stage 5 clients through their client chat room. He discusses market conditions ad and areas of interest. There are two chat rooms:
- Traders Helping Traders – Which is mainly moderated by FT. This is the most trade focused chat room. A chat room where our clients help each other with their trading by discussing indicators, platforms, software issues. This is mainly client to client.
- Lounge – this is a chat room for people to hang out and chit chat to keep the noise down from our other focused rooms.
For a sample of what the chat looks like – click here
In addition to this, there are client only webinars. They average 1 or 2 client webinars per week. Clients can join the webinars as well as access past webinar recordings. Some examples of past webinars are:
- Episode 1 – A Walk-Through
- Episode 2 – A Walk-Through of the S5 Trade
- Episode 3 – Trade Analysis & Entry
- Episode 4 – Trader Analysis for a Live Client (Trader Intervention)
- Client-Only Webinar: Impromptu on Chat Window, Market Conditions 2.15.2012
- Study Hall: An Invitation to attend our 1st Homework Session exclusive for clients
FT71 focuses his effort on educating Stage 5 clients on risk management and setting reasonable limits. FT71 tries to intervene when traders seem like they are trading emotionally or outside of reasonable risk limits. Stage 5 uses a comprehensive risk alerting system that provides audible feedback when excessive trading or risk is being taken.
For example, if the monkey (emotion trading) takes over a client’s trading habits FT71 may call the client directly. This has occurred many times, and the client’s feedback has been very positive.
Stage 5 has implemented a tool, the S5 Trade Analyzer, that was created by FT71 to provide live feedback on trade statistics and performance which helps the trader visually analyze the trading plan.This is helpful for traders creating trading plans/strategies, or things like “don’t trade during this block of time”. A sample report can be seen if you click here
Anthony Giacomin, Managing Partner at Stage 5 trading, has watched FT71 many times worked with multiple clients individually live in remote fashion to help them with their trading, their computers, their technology, and much more. I find this quite impressive for any brokerage firm to be offering. One of his earlier trader interventions is available to view if you click here
With all of these services, you’d think that Stage 5 commissions would be high. This is not the case. In fact if you mention Jigsaw Trading when you contact Stage 5, they will give you a special rate. Note that Jigsaw does not get paid anything if you sign up or trade with Stage 5. I get asked for advice on which brokerage is best all the time and so I decided to contact Stage 5, and see if they could put something together for Jigsaw customers.
My recommendation is that you contact Stage 5 and have a chat with them.
Telephone: 1-800-258-6675 (within US) +1-312-896-9897 (international) ask for Anthony Giacomin
Email : email@example.com
Stage 5 website can be found here: www.stage5trading.com
You can sign up for a S5 Trader Demo account with Stage 5 here: S5 Trader Demo
You can open a S5 Trader account with Stage 5 here: S5 Trader Account Application
You can sign up for a 30 day real-time trial of MultiCharts.NET SE with CQG Data with Stage 5 here: Stage 5 MultiCharts Demo
Stage 5 supports the Jigsaw tools on their S5 Trader platform.