i'm just trying to get a handle on the psychology of the average newbie trader out there. i'm a prop trader. i have a 90% payout but my capital is at risk. my firm has a no capital in, 50/50 ish payout plan but i cannot fathom how, why it makes sense. sure, they claim they'll eat the loses but don't people realize they'll never let you draw down any significant amount of money? for most of the traders, their systems have auto liquidate feature when they lose a grand or so. seems like if they can join a "prop" firm as a "prop" trader, put up no money, pay a high commish rate and then get slammed with a 50/50, 60/40 payout then that it is a great deal. not to mention the onerous contracts that these firms usually make u sign and lock you in indefinitely. is it a just the label and the fact that they haven't any of the money up ? their paying .008 or higher commish rates and label the shops such as Bright as an "arcade". aren't people just selling out their long term profits to protect a small amount of upfront risk capital ?