Profit Splits at day trading Firms

Discussion in 'Prop Firms' started by CoRollArY, May 10, 2006.

  1. CoRollArY


    Hi Everyone

    I am trying to evaluate the profit split % offered to me in comparison to other firms.

    I have searched around the forums, and have found a few msgs which contain such info, but not enough to get a good feel for what is acceptable.

    They are offering me a 25% split of profits to start with (trading on the firms money, no salary, but a very small guaranteed draw on future profits), until such a time as I have made 100 000 pounds profit, after which they will review the split. No information as to how they will review the split.

    This seems pretty low compared to the other figures i was seeing, such as 60%. But I am also suspect that these companies would give a complete novice 60% profit split when trading on the firms money? It seems way to high to me.

    Could someone offer some advice? Other than this profit split, I have a good impression of the company, the effort they put into training you etc

    Thanks a million,
  2. mnx


    i sent you a pm comparing it to the firm i work at...
  3. I trade prop (futures) on a 50% split, when you generate over 100k you can negociate in the 60-70% level. No money down but a simulator till you show profibality for a couple of months for novice traders.
  4. I assume you aren't putting up your own money. Because if you are, then you're getting taken.

    I get 100%. I put up 5k.
  5. md2952


    Do they offer 50-50 deals to remote traders?
  6. No $ down and no remote
  7. CoRollArY


    Thanks for the input guys.

    Definitely sounds on the low side as I feared, although they do give me the feeling they are really committed on their training. One senior trader will look after a only few novice traders.

    I'm just a bit worried about the fact that assuming you start making decent profits, it is essentially up to their discretion how much of a % they give you. And you're pretty much tied to them through your contract by that stage (can't work for a direct competitor, have to pay back training costs etc), so you can't really jump ship and go somewhere else.

    That said, I really want the job, and don't have any other options in this field as they're the first of these arcades to open up in my country.
  8. If you are a novice you should worry more about the training then the% split . There is a good chance it will take you 1 year or so to get profitable so the cut is not a big deal.
  9. If you are a novice you should worry more about the training then the% split . There is a good chance it will take you 1 year or so to get profitable so the cut is not a big deal.
  10. Because we have 500 or so traders currently, many came from other firms....the "deal" you talk about is one sided....if you don't make money, you're gone...if you do, they charge your account a lot of $$ no matter what ...before determining your cut of the profits....

    For example...say you make 5000 (pounds, dollars, euro's whatever)...and they charge fees of 5000, you get nothing, they make 5000...then you make 10,000 and they charge fees of 7500 (volume discount, LOL) you split 2500 and them make in 2 months, they have over 10,000 to "play with" - to cover any loses you may have......

    You're allowing all of this in lieu of putting up a few bucks....I sugget you think about being independent, put up some money, keep all your profits.....

    It's up to you, of course....under their thumb or being independent.....if you do take this plan, have them put in specific (reachable) goals and profit incentives...and be sure you understand their cost structure...cold!!

    Good luck in your adventure....

    #10     May 10, 2006