Well, they do charge $320 per month, similar to all the other "combine" firms. 50% is fine? How can you build up any decent profits with that?
Trade your own funds, then. IMO the only reason to go with a prop firm is to trade stupid, ridiculous size. You have to, because they're going to deduct all kinds of desk fees and commission haircuts and you'll get paid on a W-2 which means you'll get ordinary tax treatment. In reality, you'll be netting maybe 20% of your trading profits. There's a HUGE difference between SMB and a legit, really well capitalized futures proprietary trading firm like TransMarket Group or Geneva or DRW.
It seems SMB is more of a training firm just like systems vendors out there. SMB guys know that razor thin drawdown limits are hard to beat for 99% traders so they charge hefty training fees upfront plus desk, software, data, coffee, extra monitor etc. etc. End of it all SMB has made couple of grand or more per trader while welcoming the next batch of "fresh wallets" into the training programs.
All I can say for now is: - total lack of clarity - vague, incomplete answers to my questions; not much info on the website - support probably consists of one person - not willing to share any info that is important to me and, in my opinion, something any potential customer should know beforehand. Only advantage is the non-trailing drawdown and increasing limits - although it is only a promise
Better to try the Gauntlet by Earn2trade. They do not have trailing drawdown,no daily loss limits, can hold positions overnight and also during economic releases, 80% profit sharing, more no of instruments allowed within the exchange.
Sure, but you might end up with a drawdown of only $1,000 whereas SMB gives you $3,000. Then, if you make $6,000 with Helios (Earn2Trade prop firm) you pay out $3,000 and have $4,300 (0.8 x $6,000 - $3,000 + $2,500) drawdown left at most. With SMB, you can pay out $3,000 and still have $6,000 drawdown. None of these is very fair but there is no alternative
If you are a profitable future trader, it's every easy to build up an account, even starting from a cc loan. If you are not profitable trader, it's impossible to trade their live account. I don't see a reason to enroll in such a program.
Why join these firms? If you want to trade larger than your wallet or risk tolerance can stomach. Alternative? Just fund a micro account and grow it over time. Perhaps add more size via your own income as well. Is it a scam? No. Most traders lose money, and these companies are not going to put themselves at risk for you. Your job is to create a risk strategy that fits the rules, not to cry about drawdown and such. But real firms do this or that!!! Well, go join a real firm! Let's see if you can even get an interview! Real firms aren't looking for blokes like you and I off the streets. They are hiring straight from university , looking for a specific age range, are specific education background (math, science, quant/stat, coding skills), also ppl who have played competitive sports and even gamers.
SMB is 50% payout to trader The guy who was head of SMB futures trading just left SMB and started his own funding tryout firm and the payout is supposedly 70% to the trader FTMO also offers 70% payout and their max drawdown is $10,000 compared to other 70% payout form that only offers $4,000 Max drawdown
Well I paid over $20k last year in "trader education fees" and I don't even know who I paid them to. Probably you guys. Thanks for the lessons. If the total cost to a highly motivated and reasonably smart wannabe trader is less than what he would lose going at it solo, then maybe it is not a bad way to get started. Not for me, though. I like to nak my own thing.