been tradin for 3 years with 100k of capital in a retail account...I get 4 to 1 leverage. make 8% per month...my question is why wouldn't I use a prop firm and get 20 to 1 leverage with a capital contribution of $20,000. the fees are way lower than my retail. I trade about 300k shares a month...Im taking the s7 in a couple of weeks and ready to try out echo...I dont see why any daytrader wouldn't trade at a prop firm and not have to tie up all that money in a retail account?
Im looking to trade from a Prop but so far I have only found ponzi schemes. What I don't like about the firms I've been talking so far is that most of them won't offer a Good traning, no ecn rebates, a monthly payment (I want access to my account at least twice a month) the 1 year funds lock up and that I have to pay myself for my own charting, scanners, filters, exchange costs etc and on top of that I have to pay over 0,005 or 0,006 commision?.. Whats the benefit of that? just Laverage??. I know guys that trade directly from the platform floor and are paying just 0,002 or below on commision, getting full ecn rebates and with a 4x1 laverage but with full of technical support, But they're asking for a 35k minimum deposit.
All prop firms out there make money from platforms/market access/ education/volume rebates and % of your profit. They dont care if you make money they just want you to trade volume or give them money for one of the above. What do you get? leverage and lower transaction fees. If you have 25K and are profitable you may as well just trade your own account i.e. grow your capital. If you don't have 25K then trading is not a career for you!! Prop firms are a con plain and simple. They just want to turn and burn just like a gym membership.
The reason is more than 90% of small traders think they have enough capital to day trade without paying more than half of fees and monthly profit to prop firm. More thna 90% of small traders think they are pro day trader and need not to join the house. With that in mind, their PnL becomes: More than 90% of small traders lose. They just lose!!
Ifundtraders.com is Oliver Velez....don't walk; RUN! There's not a bigger scam artist in the industry then Oliver Velez!
Great advice "go hokies"! The Best advice, like yours, is usually simple, "RUN!" For more info see: http://olivervelezrefund.com/ http://www.trader32.com/2010/09/oliver-velez-scam.html
lots of good reasons to join a prop. rates, leverage, less capital needs to be tied up. it's an economies of scale industry. The firm i'm with is doing 4billion shares a month and so transaction costs are ridiculously low. I know people paying 25 cents per 1k shares on high volume low priced stocks. You can't get rates that low or access to as many ECNs with retail brokerages. The downside is it's riskier, but the odds of a prop firm taking your capital and walking away vs you losing it yourself in the market are slim to nine