Refco/Mac Futures typical deals?

Discussion in 'Prop Firms' started by scalper12, Jun 24, 2005.

  1. emjroll


    I got an offer from Refco and spent some time looking over the contract. There is a clause that allows you freedom from the contract if you make a x number dollars for them. I think it might be 400k, but not sure, you should def check. Also, whats the latest on their TT lawsuit?
    #31     Jul 1, 2005
  2. emjroll


    Round trips are much higher at Refco, but then again their cut is pretty good.
    #32     Jul 1, 2005
  3. Actually, Refco just slashed round trips by a huge amount. Granted we get charged at the old rate and receive rebates 3 months in arrears, (trying to encourage people to stay). But their costs are now amongst the lowest on the street.

    As for the TT thing, any decent trader can trade on any front end, they are all pretty simular these days. However, we have enjoyed the free software for the last 3 months.
    #33     Jul 2, 2005
  4. Scec


    regarding the contract issue, I have a theoretical question; if I sign a three yr contact with a Refco-type shop, but then leave after two years, do they in theory have a right to my earnings during year three? would this apply to me trading on my own with my own funds or only at another shop?
    thanks and good thread !!
    #34     Jul 5, 2005
  5. Would depend on a lot of things! If you made them good money, if you left under a cloud, where you went next, etc.

    The bottom line is yes they could go by the letter of the contract and make your life hard. To my experience Refco do not, however i know another prop firm beginning with G that the contract is lock tight you can't leave and they make your life hell when you do get out.
    #35     Jul 5, 2005
  6. Would someone pls explain what it means?

    Does it mean 70% for the trader if the profits for the yr is over $1M??

    #36     Jul 13, 2005
  7. yeah thats what it means
    #37     Jul 13, 2005
  8. Cheesy


    50/50 1$ to $400,000
    60/40 $400,000 to 1,000,000
    70/30 1,000,000 and above
    3 year deal

    When I was at Refco the deal was similar, but you need to read carefully and ask questions because on a 50/50 split, you must make them 400,000 on their split, so if you make 400k, then Refco takes thier 50% which is 200k, they still want the other 200k, so you actually need to make 800k to get the bump up, now that was my contract, it may be different thier now...
    #38     Jul 13, 2005
  9. This sounds like they are just tying you into doing volume with them. try to calculate how much they would make on clearing each year, then realize this is what you first need to make before you get any part of your 50/50 split. be careful.
    #39     Jul 13, 2005
  10. Cheesy


    That is how it felt while I was there, it's like a room full of market makers but the traders don't know it yet... Refco owns so many firms now that is does not matter if you lose money, you just need to trade. I checked my counter trades when they had TT and a large sum of my trades were transacted by someone from a refco owned firm, so if I lost that trade, refco just made it up from the guy who won that trade.
    #40     Jul 13, 2005