Registered: Aug 2011
06-13-12 06:19 PM
Quote from Av8rdan:
I am just now starting to do some due diligence on a possible prop trading firm I would like to use, Broad Street Trading. I see decent reviews, and the person who I've been communicating with via email has explained everything pretty well so far.
Here's my problem. Being new to this type of trading, it just sounds too good to be true. I give them $5,000 and they let me trade 10-to-1, so I have $45,000 of THEIR money to trade with. That sounds fantastic, but they say that even if I lose more than the $5,000, I do not owe them the money lost above that amount. But I also get to keep 100% of the net profits...again, sounds too good to be true. How to these firms make their money? I can understand a 70/30 split on profits or something, but they claim to pay 100% of net profits. Please....what am I missing?
I would just like to communicate with anyone currently using this firm, and give me a really honest review. Not about if I will make money, that's my worry, but how legit this company is, if they will be here a year from now, if this kind of trading (without a Series 7 license) is legal, etc.
Also, if anyone has a referral to a better non-Series 7 prop firm, I am all ears.
if you are a skilled trader, this is a pretty good deal. if you are not, maybe it isn't right for you at the moment because it is a little predatory.
their risk monitor will definitely stop you from losing more than your deposit.
they make their money off of marking up software fees and commissions.
they're probably really nice guys but their business model may be iffy to some.