Prop Firm Terms Evaluation

Discussion in 'Prop Firms' started by Canuck709, Apr 7, 2009.

  1. I have been speaking with a firm (toronto) and was hoping I could get everyones 2 cents about the terms and conditions.

    $20k deposit (half returned upon achieving positive profile)
    20:1 capital provided

    Here is how I understood the costs (in order of deduction):

    Gross P&L
    $3000 exchange fees (est on 1 million shares actively traded)
    $3000 commisions (estimated based on 1 mill shares @ $16 aggregate per security per round trip ticket per day)
    70/30 split (mine/them)
    $1500 platform fees (IRESS trading platform)

    Does this seem normal to everyone? Firm was great, people were great, risk department was great and I have received great reviews from friends at other shops but this seems pricey to me.
  2. PM.
  3. Looking at this again, it could quite possibly be the most expensive proposition I've ever seen in the prop industry.
  4. seems like a bad deal... but if the training is really good then its worth it. 20k is kinda high to put up tho imho.

    are you talking in canadian dollars? (might be a stupid question) even so, still really pricy.

    a much more reasonable deal:

    5k up front
    8/10 of a penny commission per share
    70 a month for lvl 2 data
    95/5 profit split
    manhattan office
    light training

    20:1 leverage to start

    not that hard to find the above deal.
  5. 8$ per 1000 shares isn't expensive ? :O
  6. Fractal


  7. To be fair, perhaps I didn't explain this claerly enough (i used the example they provided). Here is a better explanation

    1. Exchange fees - 0.003 per share

    2. Commissions - $16 per day for as many trades as you want in a particular security

    Does that make it any better?
  8. Fractal


    Nope. What they label as exchange fees are actually disguised commissions (google what the exchanges actually charge per share sold). They would be fine commissions in themselves, however, if it weren't for the rest of the deal.

    They're already taking $10k of your money automatically. The rest are conditions upon which they will drain the rest of the $10k.

    You'd be best putting down $10k at Interactive Brokers, paying $.005 per share all in, and keeping all of your profits. Buy a charting package for $180 a month on top of that, and that's it.
  9. bespoke


    wow that's horrible. please let us know what firm that is
  10. IRESS
    #10     Apr 9, 2009