Considering joining this Prop firm

Discussion in 'Prop Firms' started by traderdude55, Dec 22, 2010.

  1. First time posting up here.. I just wanted to get some opinions.

    I recently graduated from a top tier undergrad business school with a degree in finance and accounting. I've been making trades since freshmen year of college, but now I'm considering joining a prop shop. I've done my due diligence and went in for interviews with a couple different firms. I don't want to give out the name of the firm that I've been considering, but here's what they offer:

    CBSX member firm - so 1 yr lockup of $5k (no series 7 req)
    No desk or other service fees
    .005 commission starting out
    90% payout
    50:1 leverage so 250k bp
    Lightspeed platform

    Training isn't extensive, but the head trader acts as a mentor and teaches you his trading strategy which has proven to be profitable the majority of the time. You start off trading a couple hundred shares with a pretty low loss limit, then grow as you show profitability.

    How does all this sound? Also, for those veteran traders out there, can you share your experiences when you first started off?

  2. commissions are a little high but all in all not that bad of a deal.
  3. that is a ton of leverage for a 5k account! holy cow
  4. It's like Forex!

  5. JamesL


    Its a fair deal. Commish is a little high but you get crazy leverage. Just make sure they employ a good risk program so you can stay in the game for a bit.
  6. the commission is fine if there is no minimum. my problem is being new and giving them 5k. once money leaves your hands you don't get it back. i would give them 1000 and take 25,000 in buying power so if you ever want to leave you can.
  7. JamesL


    I think his post implies that there is a 5k minimum. I have never heard of a CBSX firm accepting less.
  8. LEAPup


    Wow, 50:1 is a large amount of leverage. Remember, 50:1 is a razor sharp double egded sword. Hope this works well for you. Keep us posted.
  9. 50-1 leverage to a new trader is like giving a loaded gun to a 5 year old. nothing good will come out of it.
    in my opinion its a great deal. my problem is that kin of leverage will cause dramatic losses as well as a gambling addiction.
  10. LEAPup


    OP, does this firm allow you to hold overnight positions?
    #10     Dec 26, 2010