I am just now starting to do some due diligence on a possible prop trading firm I would like to use, Broad Street Trading. I see decent reviews, and the person who I've been communicating with via email has explained everything pretty well so far. Here's my problem. Being new to this type of trading, it just sounds too good to be true. I give them $5,000 and they let me trade 10-to-1, so I have $45,000 of THEIR money to trade with. That sounds fantastic, but they say that even if I lose more than the $5,000, I do not owe them the money lost above that amount. But I also get to keep 100% of the net profits...again, sounds too good to be true. How to these firms make their money? I can understand a 70/30 split on profits or something, but they claim to pay 100% of net profits. Please....what am I missing? I would just like to communicate with anyone currently using this firm, and give me a really honest review. Not about if I will make money, that's my worry, but how legit this company is, if they will be here a year from now, if this kind of trading (without a Series 7 license) is legal, etc. Also, if anyone has a referral to a better non-Series 7 prop firm, I am all ears.
Hitnrun, can you give me some names, links to research? Seems every firm has some good reviews some awful...how can anyone find a good, legit firm to trade with?
Please help this gentleman, hitnrun, and leave our name out of it. $5,000 and "free money" from a Firm. I'm not picking on the gentleman, and I know that you know what you're speaking of, but come on, really? I just may want to give my grandson (he just turned 7) $5,000 to take a shot with this "free money" stuff, LOL. Sorry if I'm a bit out of character here, and I don't mean anything nasty or anything.... but what kind of business can you start with $5,000? Put it into Blackjack. Blackjack: http://www.blackjackforumonline.com/content/Brightint.htm Still "doable" at least to a point to get enough capital to start trading IMO. Don
Don I guess I read this forum wrong. It seemed like a place where an admitted rookie could go to communicate with some professionals about how to get good information on trading. Instead, Most replies like yours have been snarky and sarcastic like you have to prove a point to a noob. I already know five grand is not enough to start trading but thank you for making fun of my legit question. The fact that you also failed to reply to an email I sent you asking about your firm demonstrates arrogance and this "give my 7yo grandkid" crap is more of the same. Sorry to have bothered you superstars on here with a legit question about Broad Street Trading. Would it have killed you to you provide a legit reply?
Av8rdan, Welcome to ET. I can see how this is tough medicine and Don is the Nice guy here...I am glad there have not been the other replies yet...Please thicken your skin and hold on... I've got your back Av8rdan...so review the conduct rules and do not hesitate to hit the complain button if there is a breach. I have got to take a break soon as I have been here all day, but I will be back...so be patient. http://www.elitetrader.com/conduct_rules.cfm Sometimes when you read things a day later...they go in easier... Folks do not embarrass yourselves. Just be the Gentlemen traders that you are and behave yourselves. ES
ummm err... I am getting PM's asking for an apology...Damn..ok Traders you are NOT gentlemen...you are money making machines... Sorry... ES
Av8rdan, You know ...capitalism comes with its own set of rules. A company exists to make money and you must give more than you take. Yes it helps to know the right people...but it comes down to profit with reasonable risk for the shop. Some are better traders than others. Some of these sweet deals that are too good to be true...may simply be that. Your job is to cut the best deal at the best firm...Do not get blinded by the interview. Some blunt direct trader talk might be your best friend....Be careful out there...is it better to plunk down 5K, 7 or 10K and lose it?...or 40K and make it after about a year? ES