Prop firm payout structures. feedback needed

Discussion in 'Prop Firms' started by onava, Nov 13, 2010.

  1. onava


    Hi All,

    I got an offer from a prop firm

    the deal is

    no capital required
    i pay all costs. desk, seat, comouter, software, commisions..etc
    i get to keep 35% of profits - costs

    is this any good or a rip off deal

    thanks in advance
  2. Since you can't lose any money but only win....good deal , no matter what

    my 2c
  3. onava


    just im hearing things like some guys getting 80% etc..

    is that possible..?

    to be honest, i just want to know the average? anyone ?
  4. No capital good, the rest just doesn't add up.
    If your young with very limited bills, give it a try maybe.
    $1000 day is less then 350 to you, just do the math, it'll be hard to earn a living, with any outside bills. You need to be realistic with the amount of up days vs down days, then consider the slipt. Let assume average up day is 500??? at 80% up days ur at 16 profitable days a month, 4 down days so about 7K minus fees, @35% =2450 may be a bit overly simple example, but it'll give you an idea?????? try for 50-60% payout to start. just my 2 cents good luck
  5. they train you i assume? or are you just doing your own strategies? if they train you it isn't that bad- hard to find better than 50/50 these days without at least some of your own capital at risk imo- even with a good track record. the fact that you don't have any capital at risk is great- i'd ask about receiving a stipend of 2500 or so / month to keep you going at the beginning before you become very profitable. also what size do they let you throw around and how quickly do they allow you to size up? i mean if you can get your daily stop/loss to 10k within 6 months or so you'd be able to make a sizable amount of money with little to no risk.
  6. rosy2


    what if you never make money, would you still need to pay costs?

    If I owned the prop firm I would require the strictest risk limits...almost making it impossible to be profitable. And then just collect money on costs.

    Why dont you try to get a job at areal trading firm.
  7. How would you define a real trading firm?

    The simple fact you wouldn't have to put up your own capital is a plus. As for your cut, you have to consider all of the variables involved when analyzing whether or not u are receiving a good deal.

    i.e. what is your daily risk limit relative to your desk fees (and payout)?

    I know shops that will give u up to 70% without a capital contribution, however, ime, that is a graduated rate after u have hit a watermark.

    I worked at a shop where my daily risk limit was 15k, but my payout wasn't very good. I also worked at a shop where my payout was very good, but my daily risk limit was a fraction of the aforementioned.

    bottom line, imho, if you are new to the biz you should be concerned with learning, and learning without a capital contribution in the risky biz of trading is a great opportunity.
  8. rosy2


    Take your pick from any of the chicago firms.
  9. How can it be a rip off if you arent losing anything. Worst case scenario you lose a whole bunch of money and they tell you not to come back. Swift is also one of the best places to learn, they have access to a wide range of trading styles and options.
  10. With all due respect, the deal he is describing is a lot like some of the shops I know of and have worked at
    #10     Nov 13, 2010