Discussion in 'Prop Firms' started by cane1214, Sep 7, 2006.

  1. cane1214


    do those non-compete contracts that some prop firms have you sign, really have any weight if you decide to trade somewhere else? Do they really have any legal precedent to go after you?
  2. We have something simple about not soliciting our traders for another firm...but nothing (that I can recall) about not letting traders go elsewhere.


  3. cstu


    Could someone please give a reason why a firm that requires you to make a capital contribution would have a "non-compete" when the success rate for newbies is so low???
  4. Neodude


    Because locking in the small number of successful traders is a better guarantee of a steady cash flow from commissions or profit splits.

  5. Hmmm, let's see. Can you say "Van Buren Trading" (spinoff number 1), Echo Trade (spinoff number 2 or 3, can't remember..Hi Jeff and Rob, LOL)...Vtrader (Hi Jeff G and my new pal Mav)...not that they were necessarily a direct spin happens. You just don't want someone grabbing your list of traders and bugging them to leave, bad business practice (trust me, it's happened a few times, but for the most part, our guys were faithful, or returned after a bit). We don't really mind "open and fair" competition, in fact we seem to thrive on it.

    Anyway, long answer to a short question.

  6. artis74


    They are not worth the paper they are written on from a legal standpoint. There are loop holes in all of them and if some firm wants to take you to court to prevent you from making a living let them.
    That being if you developed anything that can be deemed proprietary then you are screwed from a legal perspective. The development of any system, software ect. while employed is NOT yours when you leave. If you are just flipping futures or stocks you are fine.
  7. Well put.