Payout pole

Discussion in 'Prop Firms' started by UddaMan, Oct 14, 2011.

What is your payout deal from your prop firm

Poll closed Oct 21, 2011.
  1. +95%

    5 vote(s)
    25.0%
  2. @90%

    2 vote(s)
    10.0%
  3. @80%

    5 vote(s)
    25.0%
  4. <80%

    8 vote(s)
    40.0%
  1. UddaMan

    UddaMan

    If your at a Prop firm that you put up money toward trading, what payout do you receive of your income?
     
  2. I don't think you can give 95-100% payouts anymore.

    Highest payout is 90% with a CBOE firm I believe
     
  3. hitnrun

    hitnrun

    there are no rules for % of payout by the cboe or sec

    some firms will use that excuse they can't pay more then 90 % that is pure bullshit

    there are several cboe registered firms that pay out 99%
     
  4. ASE1245

    ASE1245

    My attorney called the CBOE and they said any excessive payout might be considered a customer account, not a firm account. He asked what that means, and they said there is not set guideline, but 80/20 would be considered acceptable.
     
  5. 99% is standard... Its what I get...
     
  6. ASE1245

    ASE1245

    The SEC views a high payout by a firm to an employee or limited partner as odd. Who would hire an employee or take in a partner, and pay them near 100% of profits. It appears to them that trader is being treated as a customer. Customers have margin requirements. They have warned that if the purpose of the sub accounts is to avoid margin rules, they might take action.

    That is why GSEC changed all their JBO agreements to require no more than an 80/20 split a year ago.

    http://complianceinsights.typepad.com/rule_news/2010/10/cboe-misclassified-sub-accounts.html


    "Document the source of account funding and profit and loss splits - a split which provides all or virtually all of the P & L to the trader is likely a red flag that the account is a customer account."
     
  7. ECHOtrade is 100%, you'll need S7 and ECHO is with Philadelphia Stock Exchange.
     
  8. JamesL

    JamesL

    poll not pole
     
  9. UddaMan

    UddaMan

    Your correct. You can thank my iPad for changing the word. I noticed it but could not change it.....
     
  10. Finra has not come out and specifically stated what split is acceptable. This all came about summer 2010 with Reg 18. Most firms interpret it as payout less than 100%. The firm I traded with then reduced payouts from 100 to 98%. If you trade with a firm that is finra registered, holds licenses, and locks up your deposit for 1yr then you are pretty safe.
     
    #10     Oct 15, 2011