Am I Getting Ripped Off?

Discussion in 'Prop Firms' started by jamesglsn, Jan 12, 2007.

  1. jamesglsn


    I've been with a NYC Prop firm for 6 years now and my terms are no money down, .001/share, no ticket charge, and 80% payout. My best months I trade 2-3 million shares a month, but my worst months can be as low as 300k-500k per month.

    Mitigating circumstances are that I have some personal problems and have been known to take off 1-3 months at a time, yet they have always paid my health insurance every month and have always been willing to give me a 5000/mo draw when my acct has been negative. I have enermous loyalty to these guys for that reason, but I get the feeling that my charges are way too much.

    I've had 3 losing months in the last 60 and when I'm on my game I'm good for 50-100k /month without my account ever going down more than 30k before I dig back.

    All that said, am I a sucker to still be paying .01/share and giving them 20%???

    Thanks for any input and let me
  2. Sorry, I don't quite "get it". With this stellar performance, you should be running your own hedge fund. Couple that with the $500k per year you are pulling down, and it's a no-brainer. Start trading your own money with an Interactive Brokers or other discount broker. Shop around.
  3. lescor


    You are paying for a security blanket. In fact based on your numbers and what you'd pay at most places, your security blanket is probably costing you about $25,000 a month. No wonder they take care of you.

    As long as you've got enough cash to sustain your drawdowns, it silly to stay with that deal. You could try to at least re-negotiate.
  4. first i find it hard as heck to believe few if any people are paying .01 cent a share and giving 20% of the profit on 3 million shares and making money. so on 3 million shares at 1 cent a share thats 30k commissions plus another 4k in sec fee's or 34k. thats means you gross 35k a month to break even.also its hard to understand how any seasoned trader of 6 years knowing how low commissions are would pay 1 cent. but of course if what you're saying is true you're getting ram rodded bad
  5. According to your stats there is a 95% chance you will be profitable 50-100k every month. Why would you even need a 5k draw from them on the few losing months ?
  6. CTT


    If you don't put any of your own money down, you are probably not going to be able to get the best rate possible.
  7. This just doesn't add up in many respects. First, you said you pay .001/sh, then you said .01/sh- which is it? Also, why on earth would you need a $5K draw in those 3 months you haven't been profitable in the last 60 if you pull in $50-$100K per month on your good months? Do you not have any savings to live off of?

    If only half of what you said is true, and you are paying .01/sh with 80% payout, you're getting completely hosed. However, I find it hard to believe that you've been this successful for 6 years and you don't know that already.
  8. Maverick74


    The guy is completely full of shit. Take it to the bank. Next...
  9. I read your post with interest, but it doesn't make much sense to me either. Can you tell me what kind of a contract you signed and for how long?

    If you still have time on your contract and this same firm was the one that gave you your start, then you walking out will speak volumes about your integrity. That is just the truth.

    See if you can't answer my questions above. I'm sure you are paying 0.001 and not 0.01 because that would be a retail rate.

    Take care
  10. obviously the guy is full of crap, but it makes you wonder why he is posting such a bs post to begin with. He must get a kick out of talking like a big shot.

    #10     Jan 13, 2007