Out of curiosity, how is the payout taxed? When I trade futures for myself I pay a 60/40 split. 60% longterm and 40% short term. Since you arent actually trading on your brokerage account, and they are paying you based on performance, is it treated like a paycheck of real income taxed at 100% short term capital gains which could be far more expensive depending on your ultimate tax bracket of your real job/ trading gains?
You get 1099'ed, correct for most you're paid on your performance. There are a few that do actual live accounts. Most of them do SIM or start you out on SIM though. I am not trying to sit here and say it's the best deal in the world or the best situation. But frankly I don't have a lot of spare capital and this is a nice entry way for me to be able to trade futures, without risking a lot.
So since its 1099, even though you trade via sim account they still treat it like you are actually trading the futures, rather than cutting you a check like paying for performance. If they are treating it like trading futures and not paycheck then it's fine, as it is less taxes paying out under futures with the 60/40 split than paying out 100% income tax on short term gains. This is assuming you are making over $40k annually (including your trading gains) after deductions of course.
They are paying you as an independent contractor, so the 60/40 split is not involved is my understanding. You'll just receive a 1099 as if you did odd jobs and etc.
Appreciate it. I already know and agree with almost everything you said, because like you I also did my research. Most people know what these companies are about, but the fact is they do pay and it is possible to scale. Will stand by statements because what you said is just factually incorrect. You didn't pass them or stay funded and don't like them now. That is the most likely scenario here. That is fine nothing against it, but you're coming off as if you're the end all when it comes to these companies and there's no good to them at all, which it's just not the truth man. I'll give it a rest too though, don't want to debate this or be an ass, but you didn't leave me much room when you give an opinion and exit the conversation like you're the end all of end alls on these companies.