Most firms waive desk fees if you trade a certain amount of volume each month.Seminars are optional,and if not,should be.And commissions and a deposit are 2 things that every brokerage asks for.
That's why a measure of whether the firm is really interested in the trader's success is the percentage payout. Hedge funds and proprietary groups are mostly interested in training you and receiving a percentage of profits. Churn and burn firms could care less, hence the 100% payout.
Some people just can't seem to get over the fact that to succeed in this business, the whole "firm-trader" arrangement must be a "win win." We do our best to train people about trading, and the small amount we charge keeps out all the non serious people. We have 'vested interests" in many of our traders...but we have found that for the most part, the "hybrid" option of putting up a few bucks just works better. If you're a good trader, you wan to be independent and keep all your profits. If you're not then you may want the security of a job somewhere. We patterned our firm after the very successful firms on the trading floors, and we are doing fine (as are our traders). There were about 135 "trading firms" in 1999, there are but a handful left...and the market treated everyone the same. Those that are always feeling that everyone is out to screw them, will most likely not have a very successful or happy life...our trader (for the most part), are both. Don
Hi all, seems to me that a lot of people complain about nothing in the end. Since I started trading in 97 I have made money every single month from day one. Can't believe all the bitchin' from people about Bright, Echo and so on. These firms DO NOT loose money for you, people themselves do. Hadn't it been for one of these firms (take your guess), and the professional attitude as well as the goal of educating and keeping their traders to the best of their ability, I would still be climbing the corporate ladder which I hated BTW. I have met a number of other firms, where the traders weren't complaining, guess where those firms are today..... As long as poeple are ambigious and take their profession seriously, potent debates are always gonna be present, which of course is to the best of everybody. The only thing I can't stand are all you trader "wannabees" without a licence who always think the holy grail is somewhere else than in your head....
I fail to see how this is not a "win-loss" situation MOSTLY for novice traders. Trading veterans aside, the cards are stacked very high against newbies because of extraneous "tuition" costs. Care to share your newbie failure rate after 12 months? Betcha it's over 50%. I am not a disgruntled trader who harbors a grudge against daytrading firms. In fact, I've been trading this market pretty well and work for a hedge fund that shares 50% of my profits. I just have a bone to pick with firms that prey on newbie traders and value volume more than profitability and engage in snake oil tours to recruit more newbies to replace the discarded carcasses of the "failures".
I would love to meet you in person to discuss your concerns about the business of trading. Since I spend so much time teaching (colleges, etc.) for nothing, helping people to avoid all the pitfalls of retail brokerages and the real "nonsense" out there. I'm glad that you're doing well with your hedge fund and share your concerns about those who take advantage of others. Whenever I share trading techniques or strategies, and my experiences in the industry, I ruffle a lot of feathers from within the industry...all the "gurus" who don't trade, and try to sell their videos, books, and all the rest. I think you would be surprised at how similar we may be in our thinking. Our success rate is better than most, for whatever that's worth. If 50% succeed (more do), then that is fine, in a business with a small downside and an unlimited upside. 90% of all business ventures of any kind fail. Come by and see our presentation sometime, you just might restore some faith in humankind.... Peace!! Don BTW A 1,000 "lifetime" fee for basic training and continuing educations is hardly a high fee for what is being offered , IMO..
Tell that to Mark Barton. You must be referring to the business of owning a daytrading firm, certainly NOT the business of trading.
Our people are not allowed to add hundreds of thousands of dollars...we would rather point someone to another profession, than to allow them to get buried with poor trading skills. And those who "get caught" in a bad trade and lose more than their account, are covered...we cover their losses for them. As I said, we may be in agreement on many topics regarding the industry. Don