How does this "offer" sound?

Discussion in 'Prop Firms' started by wahoo, Sep 10, 2002.

  1. wahoo


    Received it in the past couple of weeks...not going to disclose name of firm for I know they probably read this board.

    It is 65% payout, .02cents charge, 3 position of upto 300 shares at a time, bullets available, no capital upfront, formal training class every week for 6months.
    Now w/no capital upfront, they will renegotiate payout/ticket charges once pnl is $25k, and at that point I may begin to draw out money. Person said exceptions may be made regarding pulling money out but not of substantial amounts (i.e. PNL is 10k and want to pull out 2K, must receive permission and they frown upon that) until 25K is reached.

    Most interesting thing said to me was 75-80% of new hires still live at home!

    I am new to "day"trading, but not finance. What do y'all think? The others I have received are capital upfront (anywhere 5-25k, higher payouts, lower ticket charges...)

    -Wahoo. (and why is it an "offer"...for all intensive purposes it is "permission" isn't it?)
  2. it does not sound good, especially the .02c part. sounds like
    a shifty worldco deal to me
  3. In addition to trading stocks make sure that this pro firm does'nt sign up aspiring singer/actors, lock em up for 5 years playing little clubs, disneyworld, Asia until they popular here ala Backstreet Boys or Boys 2 Men.

    Just kidding.

    There are a number of pro firms that will start you off at 5K with much better payout.3 years ago 2 cents/sh was the benchmark 1 year ago penny per share. Now sub penny so 2 cents is way high. Good luck
  4. that's not so bad if you just want to get experience trading and you don't really need an income. The odds of pulling money out in the first few months have to be pretty slim.
  5. G-Man


    I agree with dotslash. It is rare that you will find any place to take you without putting up any capital. If money is a problem, then I would just take the deal and get some experience and training for 3-6 months, ditch the place, and get better rates somewhere else. You will certainly not be making much money at 2 cents/share. And they say that you can't negotiate rates until you have 25K? That's BS. I paid 2 cents three years ago. Not a firm you want to trade at for the long haul. Get the experience though. Hopefully after 3-6 months, another firm will take a chance on you without any capital contribution.


    .02 is extremely high

    65% payout sucks

    3 positions of 300 shares max?? Do you realize how long it will take you to reach 25K with that "offer"?

    Keep looking around, that deal can be beaten easily....and don't sign a contract anywhere!!!! Good luck.
  7. that deal is complete bs.....2 cents is way too high, 65% way too low, and the icing on the cake is you need to have 25k in your account to withdraw a significant portion of your profits or renegotiate the deal, which means you have to net over 38k with your low payout %, and you have to accomplish this while paying an outrageous (even for a complete novice) 2cents/share!!! no wonder most of their traders live at home........if you take this deal, only do so to get experience with the intention of moving to another firm once you are confident in your trading, just make sure that you read the fine print in this deal, and that you are not locked into a long term contract.......the biggest joke in this deal is that it's completely proprietary and you don't have to contribute any money, yet you still have to have 25k in your account to withdraw any profits which means that in reality this firm wants you to contribute 25k (just in a much slower, painful, drawn out way than writing a check).......I don't even want to know what they charge for bullets......sounds like a great deal if you want to live at home with your mom
  8. It has already been said by every other poster, but I wanted to reiterate what someone said about not signing a non compete contract that you can't get out of. They want you to lock you into a shit deal. I can't believe there are firm still peddling this 2 cents a share crap in this environment. You know you found yourself a chop shop. In the end it will look like their traders lost 5K yet the firm just made 25K on them before they blew out. However if they have traders making good net money there paying 2 cents a share then they are probably phenomenal traders.
  9. If I am not wrong, they must be generic trading, right? You have to sign a one and half year contract with the firm. And if you want to leave the firm to another one during this one and half year, you have to pay 25,000 dollars, right? This sucks. I never expect that they will need you to pay 2 cents per share. Seems that the deal is crazy. Just let you know that you need more than one year to get your first check. Under this deal, it is very very hard for you to reach the 25,000 dollars. So if you can get this deal from generic, absolutely you can get a better deal from worldco. Good luck.
  10. skynet


    its not so much like a rape if they let you trade over $100 dollar stocks....they move like the you can still make some decent money with just 300 shares.

    actually that deal with the minimum 25k before withdrawal sucks....go to worldco...i bet they can give a better deal. Now if there such a thing as "Golden cuffs" run like hell.
    #10     Sep 11, 2002