A prop firm is offering 150k buying power, no comm, and 30 % payout. Also 5 year non- compete. What do you think?
not good. i figure i net somewhere around 50-55% of my gross (compared to that 30%), and my deal isn't that great at .8 and 75% payout with theoretically unlimited buying power.
Don't forget that its .8 after a million shares though. If hes not trading size maybe its a better start not to be paying the commissions. Just my .02
30% is really low. And a 5-year non-compete? Unheard of. Are they charging through any other costs to you?
Never....ever....under any circumstances.....should you sign a non-compete. If your company can't compete in regards to software, rates, etc. you should be able to leave. This is your livelihood, don't mess around. BTW-- The rest of the deal sucks also. Good luck. Volume
30% is really low. And a 5-year non-compete? Unheard of. Are they charging through any other costs to you? Yes, 10% of my 30% in a holding account upto 10K. So really, my net is less than 30% initially at 27%. The question is with zero commisions, where is the break even point. IOW, is there ever a time or volume that would justify trading w/no comm and 30% payout. Regarding noncompetes, I hear they are not really enforceable?? Anybody know first hand any difference? "make money and be chummy"
Yes, 10% of my 30% in a holding account upto 10K. So really, my net is less than 30% initially at 27%. If that's the case, then its a scam. Unless of they're willing to up your payout to over 90% once build $10,000 into your sub-account (but somehow I doubt they are). IOW, is there ever a time or volume that would justify trading w/no comm and 30% payout. Yes there is. But I would you would have to be swinging bigger size than just $150k. Regarding noncompetes, I hear they are not really enforceable?? Anybody know first hand any difference? I've also heard that they are not enforceable. But I (and most of the people on this board) have not had to test them in a court of law. Good luck.