I have been offered the following proposal from Refco Trading Services. 50/50 1$ to $400,000 60/40 $400,000 to 1,000,000 70/30 1,000,000 and above 3year deal This seems a little steep. Is there anyone from Refco Trading Services, Gelber, Kingstree, Jump Trading, Geneva willing to share their percentages. I would like to know what is the typical deal offered so I know what to come back with. Thanks,
If you are a rookie then let me tell you that is better than the first local position i took and that was after 6 years experience with ML. GHCO offered me 40/60 first £100,000 50/50 £100,000 to £500,000 60/40 £500,000 plus and that was a 4 year deal. I am at Refco now and yes i do have a much better deal, however it is all about track record. Incidentially, this is the 3rd prop shop i have been with and to my knowledge the best on the street by far. Chris
ELD SAID I am at Refco now and yes i do have a much better deal, however it is all about track record. Incidentially, this is the 3rd prop shop i have been with and to my knowledge the best on the street by far. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ I am not a rookie. I made very good money 1999 and 2000 broke even in 2001 and 2002 and have been side lined for 2 years. What should I try to counter with? Or should I just except the terms?
If you are a rookie you have no bargaining power. It isn't a bad deal at all for no experience, and i am sure you would learn a lot. Newsflow at Refco is top class, they are flexible in the products you can trade and i have heard the training program is pretty good aswell. Sorry you just edited your post..... Ok, so made made money back then. Refco and most people i know in the market consider that 2001 and 2002 were pretty easy years in comparison to the markets we have now. Ask around i am sure no-one would disagree!! Maybe you have been offered the deal on account of risk. No disrespect intended but Refco are wearing all the risk and you broke even when most people i know were having it off. Only suggestion i have is to try to reduce the length of the contract. Anyway so that you can review it in 12 months. If you do well in the next year then you have the leverage to demand a better deal.
You don't technically manage an amount of money... Basically they give you a profit/loss account beginning at $0. They say (at the beginning), you can trade two or three lots. If you succesfully make a consistant return on the 3 lot (say $500 a week), they'll say you can trade 30 lots... If you keep the perfomance up (maybe making $5k per week), they'll say TRADE 300 lots! and hope you'll make 50k per week. These aren't exact but you get the idea.
what % of people ar futures prop shops get fired or loss their stake after a few months to a yr ? isn't the model of paying huge desk fee a big obstacle to being successful? how many RT a day does one have to do to make up the desk fee if one factors in the low commissions compared to non prop RT ?