Thanks a lot guys for those great comments. After I got lay off from IBM (last Feb.), I started day trading with $30,000 capital. I have learned so much about trading past six months but unfortunately I couldnât make any money. In fact, my capital is down to $25,500. If it goes down under $25,000, I canât day trading any more. This is why I talked to Worldco about trading opportunity. But it seems like nobody likes the offer I got. I know I want to do this for living and I am very confident that I could become a better trader. I need some advises from you guys. Who to contact and what kinds of deal I should expect⦠Jisoo
At that rate, you will blow through that $5000 in less than 3 months. And that's if you break even (gross)!!! The 1.2 cents is bad enough, but the $2 ticket charge will kill you. On the other hand, Worldco knows that you will lose at least $5000 (if not more) as a newbie. So why should they eat it? Just in case you become profitable and start generating commissions? I don't think so. Just make sure you don't sign any type of long term contract. Good luck.
there is a fair amount of negotiating when joining a prop firm. unfortunately, it doesn't sound like you have any experience to negotiate with. you can get your feet wet there and move to another company with a better rate once you know the ropes. as a newbie, think of your 5k as tuition, because in all likelihood you will spend at least that much learning how to trade.... unless you can find a great mentor.
After a little time they will drop the ticket charges and you will be at 1.0 cents/share. I think i started at 1.5 cents and $5 ticket charge. Within about a month i was at 1.05 cents and no ticket charges. I wouldn't be concerned with the commission rate, worldco is about as good as most as far as fees are concerned. I would get them to pay for the series 7. You can probably negotiate the $5k down to $3k. I think i paid $100 background check too. Can't remember.
that deal sucks. sorry. you are better off bullshitting your way to a better deal. been shopping for deals myself lately and there are some decent ones. personally i think you need to get your cost down under 8 bucks per thousand all inclusive. 5 to 10k should be able to get you there at andover or hold brothers. REMEMBER don't sign a contract other than for their llp. the fact of the matter is, these firms have cut their costs dramatically and can afford to give you a decent ticket cost. most importantly, the management at these firms are bloodsucking rat bastards who can smell your ticket volume from a mile away. if you jerk them off enough you should be able to get them to pay for stupid costs like your 7. i haven't been in a firm yet that didn't have surplus computers lying around from former failed traders. the cost to have you trade at their firm may be $300 a month for your connection and their clearing costs, basically nothing. if you are putting up money, you have to get aggressive about the cost structure you want. the market right now is difficult enough without crappy deal.
i wouldn't take that deal either...... you have $25 k.....i would rather go to a place that you could get 100%payout....01per share or less with volume..... I myself trade at Echo....pretty happy there. my suggestion is to go to other offices....Bright , Echo, Leiber, Lynx, and many more.....talk with people there...check out the offices...etc...and then go from there. and you don't have to tell anyone you have the 25k...you can tell them you are trying to scrape up 10-15k..blah blah....Echo's minimum is 10k.I'm not sure about the others. good luck.
Go somewhere else....dont sign anything....unless you negotiate a better deal and they will sign it. Talk to a lawyer if you dont htink they will honor any negotiated deal.
Lawyer? LOL...we're not talking about a $1M deal here..Just a newbie deal. What - spend another $500 so some jackoff can tell you not to sign? Forget that. if I were you, I would not put up ANY money. Go and blow their money for 6 months...you will be down $5K - $10G by then. If, at that point, you think you can consistently make money...THEN you can think about brining in capital to wipe out your debt and start fresh. Everything from there is all payday. but I wouldn't put up any money to start.
if you can't get them to lower your payout by bringing no money then take whats on the table. No commission rate is goign to keep you in the game if your trading decision stink. You mention that you still had 25k....so take 20 k (and trade 100k BP) to echotrade. so far to my knowledge, they offer the best deal.....low commissions 100% payout cheap bullets and you can trade from where ever the hell you please. but if you dont want to continue risking all the money you have left then by all means trade with worldco on their dough like NYCTrader said. if after all negotiations they still want you to bring money then take that offer. just my 2cents
Hi jisoosun, a lot of members have suggested on this thread to shop around, and they are RIGHT! It is easy to get caught up in the negotiation process with one firm, but it is important to look at the big picture and remember that there are other firms out there. I am going through the same process you are right now (see my thread "Starting at Echo vs. WorldCo"). It seems to me that Echo might be the better choice, as they have much better training, and very competitive rates. You can start with $10K there, and you can trade remotely after you get proficient. Best of luck to you.