I recently sent LeeLoo a request for information regarding which brokerage and clearing firm they use. The following is one of two responses to the same question. Both times they did not answer the question! Sorry they lose my trust. Can someone please explain the "red" highlighted sentence? So i"m initiating trades and they are not going to the exchange? The trader is still gets paid on profit generated. What am I missing? Leeloo Sales <sales@leelootrading.com> To:makusan2@yahoo.com Tue, Oct 5 at 3:51 AM Hi Makusan, Thanks for reaching out. We provide our own funding. Once a trader moves to a Performance Account, we decide whether to copy the trades or not, based on the trading habits and risk. If over time, the trader shows consistency, we may offer them to move to a live account. But because of the high cost for the traders to go to a live account because of paying the pro fees, background check...etc, many decide to keep the PA account instead. Thanks for reaching out! Have a great day! Best Regards, Chris Sales Department Leelootrading.com
Ok...in fairness to LeeLoo I just received the following reply to my question. " On Tuesday, October 5, 2021, 12:39:58 PM PDT, Leeloo Sales <sales@leelootrading.com> wrote: HI Makusan We use Dorman for our corporate account. Your PA remains a SIM account. So you are correct, your trade is not "cleared." Trades copied by our corporate account obviously are. But you are not liable for any slippage / fill issues. You are paid 100% of your SIM account performance. Since the exchange raised rates and require all live account holders to pay Pro data rates ($452 per month) plus pay for their own license key etc. Our traders have increasingly preferred the PA Sim/Copy model. No sense paying all the extra expense and have little to no other benefit. A year ago our traders in live accounts could remain Non-Pro.. but the exchange no longer allows. Plus the process of moving from Eval to PA is much faster (usually 2 days)... up and running. And the emotional adjustment seems to be better too for traders. Things remain mostly the same from one day (acct) to the next. Hope that answered your questions. Thanks Mark. Best Regards, Hans Sales Department Leelootrading.com
You are paid 100% of your SIM account performance. this is a double edged sword for them If majority of traders on SIM loose they don;t loose anything as real money is not risked,,,+ they get to keep teh "Test Fee" BUT what if all of a sudden majority of those on SIM start making money .. where is that money going to come from???? that is a million dollar question Real Propr firm don;t do all this BS they hunt talent, test them , have some in house edge and then risk real money! That is why this "pay for Test model" has to be the worst ethical model from a consumer point of view
Well - at least LeeLoo is honest and upfront about this. It says so on their web page very clearly and you wouldn't even need to ask them. I believe OneUp does the same, but they're not as explicit stating it. Earn2Trade also have what they call LiveSim, which I believe is the same thing. They know the failure rate is very high and if a trader manages to get funded, they know it's likely he'll blow out before generating profits in his real account. So why bother funding him? If, however, he should be able to make profits, he will be paid out of the company's own pockets which generate income from subscription fees and failed traders trying again and again. This does however raise a few concerns: 1. What if you make a huge windfall profit? Just by chance - some trader would eventually come along who makes a huge profit simply by luck. Would they have money to pay you then if your trade never was 'copied'? Actually, this happened with some other guy and was mentioned on this forum. I believe it was an FX firm. He made a really big profit. 200-300K. And he was not paid last time I checked and was taking legal action. Split across all these firms which there are a lot of by now. Is there really that much money in selling subscription fees? 2. There's a win/lose relationship between you and the firm. It's not really in their interest that you make money as they would have to pay you out of their own pockets. All of this is good to keep in mind. I think these companies can be an opportunity for a good trader to turn a $300 one time payment for a subscription into 8-10K of profits which is what you're getting paid initially without a split, but at that point it's time to say goodbye as they're not really funding you but allowing you to continue risking your own profits for a profit split. I have never heard about anyone who's actually funded with these firms, i.e., "Go ahead, withdraw your 10K of profits. We'll continue to back you with a bigger account." At best, they just give you $5K of margin. Beyond that point you're risking your own profits.
Spot on but many don;t realize this gimmick and keep paying the TEST fees! entire thing is disingenuous if not illegal but one day I hope SEC FCA etc crack down on this
Anser is in Laiwssez Faire's detail post.. which clearly indicates that these firms relay on failed Test fee paying people coming in all the time Real prop's motive is to generate profit from selected talented traders trading profits not test fees!
I would be surprised if they are actually a U.S. based company. Maybe have a holding company or the sort in the States, but this is too crazy to be able to get away with in the long run, financially, and possibly legally.
Maverick Trading, Top Step etc. they all have a similar model wherein the income is from subscription only rather than any actual trading. The failure rate of majority traders helps them keep this up
transparency is appreciated though... if you don't know how to make money it doesn't matter whar they doing though haha. Look .. you are good. 99.99 fail. You gon be paid easily haha