The very best IMO, K-1 based on "triple net" (deduct your at home expenses as well), and exempt from FICA (Self employment tax). Save 15% off the top. Don PS: "payouts" are when the trader wants them, up to twice a week...your not treated like an employee...you're running your own trading business within our structure.
whether you PUT UP 50K OR 5K, your profit is your profit and you should be able to take it whenever you want. after all its your money. i have been looking at a few props and some say payouts are once per month and i immediately walk away after they tell me its for 'accounting reasons" due to all the traders and the fact that llc's don't have an accounting department. that is total bs because it literally takes 2 seconds to wire money to a traders account. i actually had a firm call me back and tell me they will let me draw whenever i like. i may actually go with them based on that alone even though their commissions were a tad higher. by the way,one firm says it shoul'nt matter whether or not a trader gets paid once a month or once a week because at the end of the month its all the same. tell that to a union guy working in construction. too many firms act like they are doing you a favor when in fact they are their for you not the other way around. you guys need to DEMAND your preferred payout structure.
Its seems at least Prop firm can pay twice a month. Say 15th and 31st. Seems like Prop firm objective is: get traders in here and sign contract then we have their deposit LOCK up for a year and if trader makes money this month we can take out our commish/fees first and next month give trader whatever is left.
don't know anyone that trades at bright. i do know that they require a series 7 and about 20k. why go there when you can go retail with that amount?i was going to go for my series 7 but i have been out of college for about 5 years since 2002 so getting back into the groove of studying would be hard plus i believe its actually better not to have a license.many traders have told me this where i trade.. i know a guy at chimera but in new york,he loves the guys there and should be their damn spokeperson.(lol).
Because it's so much easier to make a good living, when you can use a $million or more to engage in working strategies, IMO. 4 x $25K = only $100K, can't even do opening only orders correctly, right LESCOR? Don
When beginning at a prop firm, let's say I put up zero capital with a 50% profit-share between the firm and I. Where do the commissions get paid from? From the firm's own pocket starting out? Or do they bill you for those?
From what my traders tell me, this is the rub. For example, say you gross $5,000 and they take out $4,000 in commissions, and you split $1,000 - not too good. Also, if you gross $20,000 and they take out $4,000 in commissions, then split $16,000, you've already given away half of what it takes to keep all the net profits...either way, it seems better for the trader to get a 100% payout. Don
I don't know anything about Chimera, and not much about Bright, so I'm not commenting on the original post, but the topic of choosing where to trade. I still think that most traders give too much weight to commissions. Yes, commissions are important, and if you trade a lot of shares, they are probably the most important cost to control. But when deciding where to trade, there are so many other things to consider. The topic of how often you have access to your money has come up, and to some that's a big deal and it goes into the mix. There's a wide range of software platforms out there, some more suited to certain styles than others. Software that's poorly suited to your style of trading might cost you more in slippage and missed trades than you save in commissions. Not to mention the up time of the system and data integrity. There's an even wider range of api capabilities if you have automated strategies. Not everyone offers the same leverage, and some control how or what you trade. If you get shut out of one trade because you're out of buying power, or your quotes are lagging, you might lose the whole month's commission savings right there. And don't ignore the importance of trade support. If you lose your internet connection and have a live order in the market, how quickly can you get a hold of someone to cancel it for you? If you get screwed on a bad print from an ecn, who's calling the exchange to go to bat for you? It's a business of dollars and cents, but don't be penny wise, pound foolish.
Would I ever have to pay commissions out of pocket? If I grossed $5k and comms were $6k? Not that I expect to lose money. Also, Don, why do Traders talk in terms of gross? Sounds to me like people are trying to cover their actual skill with false profits.