30% payout w/ no comm

Discussion in 'Prop Firms' started by wefundhms, Oct 9, 2003.

  1. wefundhms

    wefundhms

    A prop firm is offering 150k buying power, no comm, and 30 % payout. Also 5 year non- compete. What do you think?
     
  2. Maverick74

    Maverick74

    Ouch!
     
  3. 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.
     
  4. 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

     
  5. bone

    bone ET Sponsor

    You can wipe your a** with that non-compete, too.
     
  6. axehawk

    axehawk

    30% is really low. And a 5-year non-compete? Unheard of. Are they charging through any other costs to you?
     
  7. VOLUME

    VOLUME

    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
     
  8. wefundhms

    wefundhms

    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"
     

  9. I couldn't have said it better myself.
     
  10. axehawk

    axehawk



    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.
     
    #10     Oct 10, 2003