Hi All, Im new to this forum and pretty much to daytrading. I traded for about 6 months during 2000 right before the market crashed and I crashed with it. I usually held my position for at least a week or so; so it wasnt daytrading. I was very succeful before the crash but at that time who wasnt LOL. I just graduated college with an IT degree. I received an offer from Echotrade in NYC and Im thinking of joining. The offer is: -I put up 2500, I get 100k buying power. -1 cent per share commision. -no other fees that Im aware of but Im gonna double check. -They say they give 2 classes a week and Ill be working with a mentor I actually sat with the person who is going to be my mentor for about 15 mins on the day of the interview and he seemed like a cool guy. They told me he'll basically be watching over me and Ill be able to look at what he does, and hell be looking at what I do. - Ill be started with no more than 100 share lots and no overnight, which to me is fine since I wanna go gradually and learn. I know daytrading is hard and few make it, but I feel 2500 is low risk, and its probably the best time in my life to at least try it. MY questions are: 1- does this seem like a good deal for someone in my position? I was also at other NY firms a few months ago but I dont remember the terms. 2- Is this (the mentoring plus the 2 classes a week) good training compared to what other firms offer to new traders or in general? 3- Any comments on begining daytrading with Echotrade (NYC) compared to starting with another firm? Ive read Echotrade is pretty good, and I liked the place when I went also. 4- Are deals like these always available for someone with my background so that if I want to do something else for a few months first I can or is this an opportunity?? I know daytrading is hard and thats why one of my main concerns is the training as I think most deals will be around the same, but I know I have to learn allot before Ill be able to do well, and Id prefer taking a slightly worse deal if it means better trading. Thanks Allot for the help Jack
Yes, they did say the commision gets lower as I trade more. Any input on the other stuff?? the training, Echotrade itself or if this type of deal is always available?? Thanks Jack
I think prop trading is a good way to gain experience with the markets. It's almost an acelerated form of learning because you trade everyday. You experience the pain of losses and satisfaction of winners. The most you will lose is your capital contribution $2500. You also get to learn from traders who are profitable. Way better than paying for some $1000+ seminars.
ECHOtrade is a good enough firm. They leave you alone to trade your own strategy. One downside is that they don't provide trading. If the NYC office does, it is unique. Honestly, you'll blow through $2500 pretty quickly so prepare to contribute more capital later. ECHO has a minimum capital requirement of $2k now. Who pays your software fee? If the manager does, when will it be rebated. I have had to wait two months before. Additional fees: $350 PHLX registration fee, .002 Pax Clearing, ECN fees. Everyone has a finger in the pot and it can feel like you are being nickeled and dimed. Go for it, but you'll need more than $2500 to give it a honest effort.
jack, I'd second what Durango said and just add that I traded some $ with Echo for 2years and had a pretty good experience with them. I would always feel comfortable going back to them. I know a few guys in the NYC office. From what I hear, Nick is a good guy. And if they're gonna give you some training too it sounds like a good deal. IMO, you should really try to get a bigger wad to strt off with. Good luck, uptik2000
Thanks for the replies guys! Im definitelly gonna ask about the fees. I know that 2500 goes pretty quickly but I didnt know I had to contribute more capital once I lost that, I thought could go down allot more under their money and the buying power the give me. I know they said they expect me to lose for awhile until I become profitable and I know they said that if I lose more than the 2500 Im not responsible for it. Would they ask me to put in more money if I lose the 2500?? Also they didnt really say training, they mostly said Id be working with a mentor, who like I said would be watching what I do and Id be able to look at what he does to. And the two classes a week I mentioned he didnt really mention it was like training he said it more in the lines of thats available to all who work at the echotrade NY so it might be advanced for me now that I think of it. I really dont want to contribute much more than the 2500, so I definitelly have some more things to ask before I do anything. Thanks for the input With this said do you think this mentoring is good training compared to what other offices offer?? Please let me know about any other stuff I should be aware off. Thanks Allot Jack
I think Echo is a good firm. They'll treat you fine, better than most. Don't however sign a contract. If they want you to learn with them and grow with them then fine, but you'll give them you're pound of flesh through commish and no contract is needed. Good luck.
Hi, thanks for the input. Why shouldnt I sign a contract?? I have a feeling I will need to sign a contract, they are sponsoring me for the series 7 and because of the fact that its kind of a training program I think I will have to sign something. Is there anything in particular I should look out for?? Thanks Jack
What's the big deal on the "sponsorship"? All they do is sign a form. It costs them nothing and you probably pay the test fee. They were my first firm, and paid for the test also. I signed nothing. That's not meaningful sponsorship. I mean if they put you up in an apartment in Cairo and fed you secret market data to trade on, paid for your food and clothes and spending money too like the US did with Saddam years ago, that's real sponsorship. But Echo is not "sponsoring" you. They will still want you without a signature. And with Genesis on the field now Echo is gonna need every penny a share trader they can get.