Deal of the Century Prop Firm

Discussion in 'Prop Firms' started by bigpapi, Dec 28, 2009.

  1. bigpapi


    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
  2. $7500 capital + .0055 + ECN fees and 95% payout = "Deal of the century"?


    Sure, if it was 6 or 7 years ago.
  3. bigpapi


    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
  4. You should be at 100% payout anywhere when you put up your own money.
  5. Pretty standard deal. 20 to 1 is shitty IMO, but I keep seeing it more and more.
  6. Boff


    OP, would you mind disclosing the firm's name?
  7. bigpapi


    Im not sure if I should, I can say though that they are in NY and are one of the better known firms.
  8. 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.
  9. Why do people keep saying this when it's not true?

    If you put up your own capital, 100% payout is industry standard.
  10. Tide31


    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.
    #10     Dec 29, 2009