I have respect for Mr. Tharp Senior, and am always hoping that the next generation will do as much for the industry. We (the "old guys") want to see the business continue in a positive way, so that there will increased opportunities for all our grand-kids....(otherwise I'm leaving my money to the Dog!). Now to your questions, Candle. In the past we would hold a reserve (25%) when a trader took profits out. If their account were to fall below $15K ($10K below minimum) and they did not put some of their distributions back into the account (to keep it above the $15Kminimum) they were subject to losing their reserve. We also gave all traders an opportunity to make their account average $25K by year end (again, the minimum acct. balance), and told them what they needed to do in Oct or Nov so that they would get their reserve. Many times a trader would borrow some $$ to bring the account up to the minimum and get their reserve. Our whole intention was to keep the traders in business during hard times. Whenever a trader lost money overall, we never kept their reserve. It was only in a very few (very, very few) that we kept the reserve. It was usually when a trader would abuse the firm by taking out all their profits and then going deficit and not bringing the account back up to zero (wherein we would deposit back the reserve, which would not have been there if the trader spent it all). This system works well for 99% of the traders, and complied with the legalities. We have never kept traders original capital deposit (that wouldn't be nice, would it?). We are now paying out 100% when the account is above the minimum requirement. I hope this is clear, and if it is not, then feel free to call me anytime. 800.249.7488 The new rates, haircut reductions, rent reductions and all the rest will hit our traders in about 2 weeks, and I will post them on my website.
Thank you for the post of clarification, Don, from which I gather that your 25% withholding policy is no longer in operation, at least in more recent times. Please stipulate what the 'minimum requirement' that is referred to is currently set at? Candle
We ask that $25K be depositied initially (but am now offering "low cash" programs to a select few...I will offer those details in 2 weeks). The minimum that I refer to for distribution is $15K balance in the account. Since we train new people and attract many (perhaps most) from other firms who take profits from traders, we feel that our programs offer flexibility to both extremes. Thanks for "moderating" this!!
YES it does, and have no fear, I am really enjoying myself here most of the time...it is only the ridiculous, not the sublime, that bothers me. Do you trade with ProTrader or is that just your screen name?
Now that we should have a clear view of the reasons for our previous policies. We have always made changes in the traders favor over the years. Sometimes it takes a while to review policies, since we do have so many existing traders in various level of capitalization. You can all thank our ex traders who started and run Echo, FMB, and Van Buren (and a couple of other firms who are no longer around) for instituting differing policies that traders have found important. You may also thank the other "competitors" for our new (much lower) pricing schedules, rent reductions and all the rest. You all can also thank our friends from Daytraders USA, Daytraders online, Online Trading Expo, Financial Fest, Stocks and Commodities Magazine, and all the rest of the "at home trading public" for our 2002 addition of 250 remote trader authorizations. **Please bear with me, this may sound like a commercial announcement...but I think I may be entitled*** We at Bright Trading have worked really hard to grow the industry, have spawned new trading firms, and always been a leader when it comes to pricing, access, and benefits to traders. We welcome competition, and have been quick to respond if we found ourselves in a competitive disadvantage from a new trading firm. We did not fall prey to silly hyperbole from under-capitalized firms desperate to stay in business by offering insane incentives ("insane incentives" I like that!) to our managers and traders, to "jump ship." 99% of the time, these attempts have backfired and have given us a great insight into the deceptive activities of others. I personally prefer to see us (all prop firms)set a professional tone to what we do, and make the overall environment conducive to all trading activities. Again, thanks for listening (reading)...and to those who hate "ads" ...I am simply responding to peoples questions...
just curious, don apologized to rtharp didn't he???? what was that all about? did he really have his brother call echo???? this is getting out of hand, it is starting to feel like "Bright's" site.
Dear Don, Hooked on Phonics failed for you. How the hell did you contort my post to come up with the response "We DO NOT 'BANK' 25% " Show me where I said that you did. I said you banked the interest on that 25%. Which ain't no pocket change. (Sorry bout the grammar. I'm a smidgen inept wit dat English language you know.) As for: "We prefer that every trader just keep their minimum in their account..." OK. So is that because you bend them over with haircut (interest) charges??? By the way, you really gotta watch that blood pressure and one more thing, YES, WE DO HATE ADS.
Actually, this is more like therapy than anything else. Our traders are businessmen, who assess all their own costs and run their respective businesses accordingly. Good Luck with your trading.