Firms that require capital deposits...

Discussion in 'Prop Firms' started by browncoat, Jan 26, 2009.

  1. Hello,

    Can someone give me some insight on what the advantages/disadvantages are with joining a firm that requires a capital deposit?

    Generally, are the turnover rates at firms that require capital deposits a lot lower than firms that don't?

    Are you pretty much guaranteed a job at one, as long as you have the money?

    Do they train less, because they expect you to have experience if you're willing to put money down?

    Any other info would be great.

  2. Hi there...Trading is a business, and should be treated as such. I can speak for Bright Trading, and we engage in what is generally referred to as the "Stock Exchange Floor Trader" business model. Our traders put up money, and in exchange can use our Capital to trade with (it generally takes use of a $million or more to engage in good, solid strategies like opening only, correlated pairs, mergers, etc.). ....our traders keep 100% of their profits, and are responsible for losses as well.

    Our traders are always learning and interacting. No trader, from Xiamen China to Dubai is ever "left alone"....always online with direct manager/mentor/team/group etc. Heck, I have over 300 traders on my Yahoo messenger, LOL. We are proud to have some of the very best traders on the planet. We also train brand new people in our basic programs (54 new people in class last week).

    There are fewer and fewer of "employee type" trading jobs any longer, and even fewer "no deposit" type firms. Many of them would allow a trader to start with zero money, but not allow any draws until account had $25,000 or so, so essentially the trader had money up anyway. The firm would keep half or more of the trader profits. This model is "ok" but I contend that it would be better to keep all your profits and put some money up. If you're splitting even $10k per month, that deposit seems pretty small.

    From my perspective, FWIW...