Hello, I was recently "hired" to join a prop firm in Chicago. Although it goes by its own name, it is a sub. of Merrill Lynch. The deal is, the first 2 weeks is full-time training, for the remaining 6 weeks, you trade 1/2 day and train 1/2 day. At the end of the 2 month period, you are given $250,000 in capital to trade with. Esentially we are to use their trading platform and are therefore piloting their program. There is no salary, but there is a $5000 "insurance fee", meaning that if you cause the firm a large loss, you are only liable for your $5000 contribution. If you're making money and for some reason you want out, you supposedly get the $5000 back, no questions asked. On average, how much do traders make in this sort of situation? At this firm, the policy is that the trader keeps the first $2000/mo they make for themselves and after that you only keep 60% (as a junior trader). Does this all sound normal?
That's a pretty good deal actually. A lot of firm don't even have salary, if you don't make a profit, you starve.
lol, you obviously didn't read his post... wonderful. If you only had at maximum, a risk of 5k, no matter how much you lost, and could learn there with training, heck I'd take that deal. WIsh I could have started trading on a deal like that.
I agree with you there Jmowery....... I would have learned a lot and saved a lot with a deal like that a few yrs back. Shilz - Wish you well in your trading career !
I've got news for you, they're not going to sit there and let you lose $10K, $15K, $25K+. Once you get close to the $5K, they'll shut you down. It's hard to evaluate the deal without knowing your commission structure. As for the payout, it seems good enough. The key is the training, but you really won't know for sure how much/how good it is until you start. If they really do provide training, I'd say that's a pretty good deal for a new trader, assuming your commission rates aren't high.
Exactly. That's not a prop firm, that's a shady pretend prop firm deal. A true prop will not take your money even if you ask them to. And may even give you a draw for the first several months as long as you show potential. If this is stocks, which it sounds like it is, you are getting scammed. If you put money down, you deserve at least 95% of your profits. Period. You are not an employee, you are a client btw. I would check on the rates also, smth tells me they will rip you off.
Shilz, What is up with the name? Sounds a lot like "shill". Not a positive connotation for someone with one post who is outlining a deal being offered to newbies, which, as Hydroblunt points out above, does not include details like commison rates. IMHO, you might be better off with a different name! http://dictionary.reference.com/browse/shill
What's wrong with the name "Shill." Need I remind you that one of the leaders in prop trading for decades has been the venerable firm of Shill Securities. Shill offers its traders free instruction in the WizeTrade platform and free membership in the Traders International chat site.
I actually agree with Hydro for once.....60% of profit over $2000 isn't a great deal unless the training is exceptional. Be careful and read the fine print, some of these guys have a very restrictive non-compete if you leave for a better deal, and you will.