Trader funding & training - for real?

Discussion in 'Prop Firms' started by hippietrader, Aug 1, 2009.

  1. I dig into it further. After a week's free trial watching their trades, there is non-refundable fee of USD $10,000 to become their student for a year.

    This is an upfront fee. It is gone as soon as hand the money over. There is no partial refund if you leave after a month - even if you never make or trade.

    Their site say "installment" payment, but there is a 10k upfront. I don't know how much are installments each month.

    If you make money using their method, they get 40% - this is okay if not for the upfront fee being $10,000 USD !

    I have a feeling that this may be another Oliver Velez kind of scam. You pay many thousands (10k upfront in this case) - they make money on you even if you lose big time using their method!

    The firm is called it StockMarketFunding (SMF). My questions is who is funding who ?
  2. RUN, don't walk away from this!
  3. One thing I forgot to mention, you can check out their one week free trail to watch their trades and decide for yourself.

    Just remember that your 10k upfront fee is gone as soon as you join after your first week.
  4. Another mailbox "business".

    Here's their address...

    The UPS Store
    2505 Anthem Village Dr Suite E
    Henderson, NV 89052
    (702) 914-0655

    Wow! What a successful group of traders!

    Phone Lookup Report for 702-685-0772 = Identity Protection

    Hmmm, 'guess they don't want you dropping by to get your $10k back.
  5. This sounds like a complete rip off..... this 10k is used to back your own trading just in a way that makes it border line legal to trade unlicensed b/c they consider it a learning fee instead of deposit.
  6. It is trader scamming. Not trader funding.

    I look into it only they use the word funding. When I found the 10k upfront fee. I run

    This is another Oliver Velez type deal.

    Trader pay many thousands upfront for some garbage training in order to get the "funding", then they keep about half of whatever profits you make for providing you with "funding". When you lose some percentage of your upfront contribution, you are out.
  7. So as long you don't say it is a deposit, you are within legal borders ?

    Our Office Address: LLC

    HENDERSON, NV 89052

    Isn't Nevada THE place for scams ?

  8. If it is a deposit, at least you may get it back if you don't lose any money. When they call it training fee. It is gone before you even trade !!

    What a deal.
  9. A deposit, training fee and capital contribution are all the same thing. If you join a true prop firm there is none of this going on. Whenever you put any sort of money into a firm that you are going to trade for it is simply a risk deposit no matter what the firm calls it.

    They very well may teach you along with it but if you put up 5k and go negative 5k you will be asked to put up more money or be let go. This is for the most part, I'm sure that in some firms if you lose and they see talent they will let you go a little further but the bottom line is that whatever you want to call it, it's a risk deposit. There are ways to get around SEC guidelines for a none broker dealer to fudge with the wording but in reality the only way you're seeing a cent of that money back is if you take home checks.

    Ask any trader that's traded at one of these places, the "training fee" is usually about the exact same amount as the "put more money up or you're fired" negative number.
    #10     Aug 9, 2009