umm... don't forget that if you open a swift or title it's not a 50/50 split between you and trader. head office will take a nice chunk so it's more like 50/25/25 as far as I know and you'll be lucky to have traders making 2-3K after a few months... or even years. a number of traders been trading for 2+ years at my place still breaking even or losing. don't know why they continue....
Don I completely agree with you, and no two ways about the salary part either. And yes $50 is quite a tough criteria not just because of the limited scope for traders to play n learn but also the possibility of damage that can happen to a traders psychology. Though that is swifts method (in the hq for sure). Of course there are ways to increase the limits on the basis of past performance(3-5days prior to be precise) etc. As for the person who mentioned about 2-4 newbie traders not being able to make 2-3k total using your successful strategy/style/training skills basically would only prove 1 thing, you(the person starting the business/franchise) do not have skill to teach something you know works and have not been able to teach your strategy/style at all. Of course if I had to follow the same thing I would need to have some serious non-compete agreements protecting my interests. In all honesty if you intend to teach your strategy etc. I would go in the direction of what Don mentioned. But to start your own floor/franchise you should be a good trainer and mentor, i.e. be a true teacher/guru (not the current trend of the use of that word but the literal meaning). From the first day that I entered an educational institution as a toddler till date I have had over a 100 educators/professors etc. but in true form I would give anyone leaving 3 the title of a teacher. Starting a prop shop is not(only) a business of investing/trading the markets its is a business of investing in people and it can be extremely expensive, if you taught well you will get the returns else you will have a whole lot of traders who will be either in a loss 2+ years in or just breaking even. Though again breaking even is yet another business model. There are the added benifits for that too. And I do not intend to explain the last statement, if I would have been teaching you to swim this would be the part where I would teach you all the basics and leave your hand in the deep end so that you could analyze what to do and do it.