Success rates are probably not too high these days. I've heard anywhere from 50-10% make it. Desk fees vary depending on the shop, but at most competitive shops, they are actually pretty reasonable considering what you get - TT, charts, bloomberg, reuters, possibly a analyst/newsreader, direct connections to exchanges, full time IT staff, low commissions.
It's usually 50% if you are new. With a track record your percentage can go up much higher depending on the shop. 50% is not a bad deal considering you're getting to learn on the company's money, and usually with some sort of draw/salary so you don't have to work a second job to get by. Most importantly, you'll be trading large size much faster than if you were on your own. Would you rather have 100% of the profits from trading 5-10 lots while you build your account up, taking 100% of the risk or would you rather have 50% of the profits on trading 300 lots taking no personal risk???
Yes and that is with every prop shop!! The desk costs, they pass onto you the costs for all software, newswires etc etc. And they take a cut of profits based on the fact that they provide your funding. If you make £20,000 a month and desk costs are say £1,600. You are on 50%-50%. Then you will will receive £9,200, your 50% after costs are taken out.
Sean, If it works like gotmessner wrote (begin with small lots and built it up from there), I think you have a fair deal even if you have to sign a 3 year contract. They take the risk, they invest in you, you will learn a lot and you will prove them that they are right. Good luck!
Could someone please clarify the difference between the 'Pro' Firms and the 'Retail' Firms. Obviously trading someone else's capital is different than trading your own at a retail shop, but it seems that some of these so called pro firms also require capital contribution. So, does 'Pro' mean that you trade only firm capital? Assuming that one would like to eventually work on a desk at one of the big I-Banks, would working at Refco be a step in the right direction? Or would you still be viewed by the banks in the way that they view the avg day trader. I personally have nothing against day traders as I do some day trading myself - just curious as to whether or not a trading job at one of these Pro firms would be more likely to lead into the 'real world' vs trading on a retail desk? Any info would be appreciated - these posts have been very informative thus far.
i don't know what you call very good money but for 2 years you broke even and have not traded(i dont know the circumstances) for 2 years. you have not made any money trading for 4 years. i would accept the deal and start as soon as they will let you. if you reach the high tier you will make a lot of $$$$. the only thing i would put in the contract is a buyout clause. no more than $150000. this is a fair amount because if you make 70/30 they will make well over $500000 from you.
Remember to ask them how much they will require you to keep in your account with them to trade size. Also making it for $150,000 in profits or 3 years (whichever comes first) is a good idea and an idea that they will probably agree to. Cheers, TRADERguy
I am interested if anyone who trades at Refco can elaborate on this. If you are a backed trader do they pay your profit share monthly and are you required to keep some profits in your account to be given more size?
They pay monthly and if you are in a fix you can get a check cut quicker. When I was there the amount you were required to keep in your account depended on how much you were trusted; management has changed so I would find out the policy from someone who currently works there. Cheers, TRADERguy