Payout Grid Review

Discussion in 'Prop Firms' started by Canuck709, Jun 30, 2009.

  1. Up until recently I was unwilling to look at firm that paid less than 100% however I have now talked to a few regarding their scale and was wondering if anyone had an idea of what a typical payout scale looks like for comparison purposes. Here is one of the offers

    0 to $250000 70%
    250,000 to 500,000 80%
    over 500,000 90%
  2. I am not a prop trader, but doesn't that somewhat also depend on the trader's perceived ability and value to the firm?
  3. All depends on commisions. I could never make money at bright or even IB or assent, yet I am doing well with a 40% payout. Getting 100% at those firms would do nothing to my net maybe even destroy it in bad months. As far as getting 60% remote, or more with simmilar costs, I like the office atmosphere and friendship. Don't want to be a hobit at home... yet.... I could open an office for one of the companies and get good payout and office, but then I am responsible for rent, training noobs etc. not my idea of improving my trading... yet..You will get fleeced one way or the other there is no free lunch, you have to decided whats best for you, payout/commision/office environment. Those companies are created to make profits. Sometimes you might get a good deal in a bait switch deal where the company will give you good payout just so they can copy your strategy to give to their traders in china that they pay 10% or they will frontrun your orders.

    Hope that helps.
  4. Swiftmike, i am baffled by your last comment. You have been trading for quite a long time I think, but you wont risk 3k/mo fixed costs to move your payout up from 40% to 80%?! Why?
  5. Headaches.
  6. I asked because I have personal experience doing it. The headaches are nothing compared to the freedom of removing a middle man. And if you really cant handle writing a cheque for rent once a month, and coordinating a cleaning lady and some cable TV, 40% buys a lot of Advil.
  7. Headaches is right. . training new people and dealing with people and trainies is the worst thing in the world... unless they are your friends and you dont do business with them then people are cool...

    If you are making 10k a month, 3k is alot of money to risk. Making 20k then maybe makes sense. I am not a superstar like you, if I was making 30k+ a month then sure.

    Most companies have offices in the cities I want to what go to freaking Africa? or South America? Mexico? For extra 10% -20% APR. I am not chinese (no offense).. Miss my family and friends???? Or go with shady company?