Proprietary trader Commission % on profit

axehawk · May 23, 2002

...at this horrible prop deal is because its from CANADA. I'm fairly certain that this is Swifttrade's standard offer to newbies. This is the kind of crap you can deal when you're ONLY prop firm in the country. (Its called a monopoly).

Thank god for IB. 8 days and counting!!!

VOLUME · May 24, 2002

Since you have no capital and no experience, take the job. Go there and learn everything you can. Take the salary and benefits(hopefully). Just DON'T SIGN A CONTRACT!!!! After you become profitable, bolt to a better deal or stay and negotiate one. Believe me, once you have proven yourself as a profitable trader the power is in your hands!! Good luck.

QuoteBoy · May 24, 2002

I like your deal, like someone posted though...
have they closed the doors for newbies?
PM me so we can talk. I think I know the firm..

To anyone else, does the % payout matter so much if your working capital is larger to compensate?

Turlo · May 24, 2002

Shop around First. DO NOT SIGN A CONTRACT! If you do in fact have no commissions then it might be OK. If you have to pay any commissions do not take it even if they sound extremely low... That deal sucks!

Others to consider:
Worldco
Andover
Bright
Eco

Good luck.......

Don Bright · May 24, 2002

Originally posted by Zhuge
I was offer a proprietary position with a trading firm.

They offer me a commission structure with these rules.
I am require to make a minimum of 5k a month and whatever I make on top of that I get 30% of it.

So say I make 10k, they keep 5k, I get 30% of the other 5k.
Which leaves me 1.5k, and they get the rest.

To sum it up, they get 8.5k and I get 1.5k out of the 10k.

I like to know if this is a fair offer they are proposing?

Should I be negotiating for something better then this, or would this commission be the standard payout for prop traders?

Thank you for any input.
More...

This is a joke....period!

machine · May 24, 2002

Originally posted by axehawk
...at this horrible prop deal is because its from CANADA. I'm fairly certain that this is Swifttrade's standard offer to newbies. This is the kind of crap you can deal when you're ONLY prop firm in the country. (Its called a monopoly).

Thank god for IB. 8 days and counting!!!
More...

Yeah, I recognized it also.
No comissions - that's true, also you'll have to pay all ECN and SOES and SEC fees. They will teach you how to turn those fees negative, i.e. get more ISLD and INCA credits by bidding and offering. Unfortunately all that leads to extreme overtrading - 500K - 1M shares a day is common and most of the newbes still have no idea about real trading. You can make living though - 5K a month is their minimum, if you cannot make it - you get nothing. If you make 5k+ (5100 for example) you get 30% of the whole sum (30% of 5100 = 1.7K) but half of that goes straight to Revenue Canada. No salary on top of that. Their software is a POS.
To summarize, good place to start trading career since you don't risk your own money and smart enough to learn something besides bidding and offering on slow moving stocks.

I Missed Boat · May 24, 2002

I think I know this firm. Send me a personal message if you don't mind and let me know the place. If it is where I'm thinking, I might be able to give you some info.