Winning is one of the characteristics in regard to qualify for a payout. The overlooked menace here is the 20% consistency rule. In order to satisfy this rule, a trader has to be consistent in similar profits if they wish to be paid out early. Forgot to mention that there is a "cycle" of restricted paid out before a trader can get access to all of their profits. For instance, If I was up 30k and wanted 25k, I will have to withdraw 3k of profits a few times before receiving the big chunk.
But my point is if by chance if traders do good, where would the payouts come from? since the firm is not taking actual trades! in real market
You already know the answer to this question. We get it, you don't like the business model, you have told us 100s of times already. There is no point in repeating yourself over and over again. Move on.
Here is a video that pretty well explains how prop-firm business model works. Its not all that bad: Essentially prop-firms that are playing A-book & B-book business model are simply stuffing T&Cs with dozens of restrictive rules for a one practical reason, to set as many trip-wires as possible to prevent you winning payout. I was recently listening an interview with a owner of one prop-firm where he said that they have 170 employees. I was asking myself why the hell firm like that needs 170 employees when trading is just information and one can do it all with software. The reason is simple, his firm has so many of these trip-wire rules that he needs an army of employees to look for reasons to cancel payments.
I posted because people post info about NEW firms as if they are somewhat fair to the other ones out there... and it is not about if I like the model or not it is about pointing out how false the model is and any body thinking of joining should be aware of this And since you seems to be OK with the model how about explaining where would the money come from?
This is my reasoning. A-B-book prop-firms business model is not pretty, but one has to live with it. In essence there are x3 types of prop-firms: OLD A-B-book ( like FTMO, Blue Gardian, DarwinX etc. ), paid once, more reputable, with higher probability of payout. They don't need to advertise as much because they have reputation. Their sites have tons of pages and these pages are very detailed and answer 90% of questions you might have. NEW A-B-book, paid once, which is any prop-firm younger then 2 years that you found by clicking on an ad. They have no reputation, so they advertise like crazy. They have x2 page sites and T&Cs are totally vague, mostly giving them all the rights. They'll pay you out, but only small sums. For big payouts, just forget it. Essentially owner is some small time crook/criminal who jumped in after on some party he overheard other prop-firm owner boasting about how much money he's raking in. real futures prop-firm, paid monthly, where you trade directly on market and they make money for providing traffic to market makers. Honestly, I don't know how high is probability of payout with these. If anybody knows, please chime in. Important thing is how prop-firms are paid, which I highlighted above. If you think that you can pay $200 once and milk out $200,000 for the rest of your life, you are obviously setting yourself up to swallow the hook and to be led up the garden path. Choice is really all yours. Now, one remedy to the above mentioned troubles, is to build social media presence, like YouTube, Pinterest, Instagram, TickTok etc., combined with a Discord group. Now, this will not guarantee you a payout but will increase a probability of you getting it. Once prop-firms sees that you have social presence they'll think twice before witholding your payout, because their only real capital is publicity that drives their sales.
Yeah, I'm not here to bash other people's businesses. I'm just looking for way to find common interest. I'll send you a pm, but you have to pass the link on everybody else who asks. Plus, you have to give mi like, because I'm a sucker for likes.
Actually that happens more often than you would like to admit. Which is why many prop firms add the clause that they can force you into a live brokerage account if they so choose, to protect themselves from the rockstar trader making bank on sim.