Please someone tell me if Im getting ripped off: 7.5k deposit .0055 per share (1k shares=5.5bucks) + ecn fees - ecn rebate 95% payout 20x Leverage, which can be increased 1year hold on my $$$ Payouts once a month If after a couple of months Im profitable, I am given the option to be backed up by the firm, with a 75/25 split No series 7 Free Lightspeed platform and 175.00 data fee per month Remote trading No training offered
$7500 capital + .0055 + ECN fees and 95% payout = "Deal of the century"? LMAO. Sure, if it was 6 or 7 years ago.
What is the standard these days??? You haver any ones you use or used that offer a better rate??? Keep in mind the 95% payout
7.5k is prob a tiny bit (2.5k) too much, especially if you're a newbie but not crazy. 0.0055 - is nothing to write home to mama about, but, u have 0 volume right now (im assuming) and for them to at least recoup the time spent with you the have to make a few $. Plus on volume it doesn't matter to much. Im sure once /if your volume picks up you can renegotiate. 95% is a regulatory #, they can't do 100%. Maybe their attorneys decided that 99 or 98 is too close, or they made a business decision that under the cover of regulatory to shave a few points - not a huge deal, unless you start making major $, and even still.. after being positive - rather go for the full payout not a split. If your profitable and their risk guys think you are safe, whats the point of giving up an extra 20% of your profits? once you start losing they will cut you lose very very quick and will be right. 20x is excessive for a beginner, and for most people in general. on 7.5k itsn ot bad, but i would stay away from firms that give out excessive leverage. They blow up. Big time. All these cowboys that yell leverage leverage - if they are getting it now - I'd be worried. someone will (high probablity) blow the firm up. And then it'll be AB WATLEY, BROADWAY, WORLDCO, etc etc etc all over again. Its not a good deal, its not TERRIBLE. could do better - but again, on small volume the $ won't make big difference. I'd just be worried about the excessive leverage.
Why do people keep saying this when it's not true? If you put up your own capital, 100% payout is industry standard.
Since you don't need to be licensed, I think this is in the ballpark. Have seen slightly better for 7, 55, 63 FINRA. The deal where they back you, what is the commission rate on 75/25? Does it go up to .01/share? You should ask this, I'm sure it does. If you are a K-1 partner and not a retail trader, then you cannot receive 100% payout. Then you're not a partner, you are retail and must keep a minimum of $25k in account at all times and have restrictions on leverage.