I recently got a job offer from Hold Brothers to be an employee trader, and they asked me to sign a two year non compete agreement as part of the contract. I was wondering if this was standard practice in the industry or are they trying to screw me. I really want to trade, but I dont want to jump blindly into a bad offer. Any input would be appreciated.
tell hold to stick it ....they probably wont even be in business in 1 year let alone 2.....if you do it, dont sweat the noncompete clause... first of all, its not worth their time and secondly, any rational judge would slap them for being so sad...its not like customers are at stake
you really should do a search on them if you haven't already. i know nothing about these guys personally, but i do recall someone on this board sharing that Hold bros will try to enforce the contract should you decide to leave. i have not heard of any other firms doing this. there are many post regarding this particular firm....i would spend some time reading them before i signed that deal.
In this environment, no one should sign non-compete arrangements. The market is just in such a state of flux that to box yourself in a deal for 2 years could be seriously damaging to your financial health. When I mean market in flux I mean market conditions -volatility and volume AND the market of the companies providing the trading infasctructure (i.e. brokers and firms).What was dirt cheap 1./5 years ago is only average now-ask any trader that is at least marginally successful and does some semblance of heavy volume. However it is FAIR for them to ask for you not to raid their office and take away their traders for a certain perdio of time. Just my musings
I suppose it makes a certain amount of sense, since I would be trading their money. Has anyone out there signed such an agreement, whether for the positive or negative? I did a search and got some useful info, but it mostly deals with customer traders, not employee. Oh, and thanks for the prompt replies! This message board rocks!
Shop harder, there are props out there that will get you in around 5K. 100%payout, decent commish no locks. If you have to deal with them, get an exit clause which gives you the right to leave if certain conditions persist that did'nt get cured within a certain time. Example-office environment- what if guy next to you curses after every losing trade. Do you want to sit next to him for next 2 years? What if your sheets are fu#$ed up every morning? what if system goes down every fast market? stuff like that. Negotiate!!!!!It only your life!! (for next 2 years at least)
It's common. But remember, there's not a State in the Union that will enforce a contract that prevents you from earning a living. Unless you're stealing customers or a proprietary process protected by US Patent, they can in effect wipe their ass with that contract. Sure, they can make you sign anything, but that doesn't mean it's enforceable in a court of law.
There is nothing wrong with a non-compete as long as your able to leave, but not solicit traders from within that company. No firm wants to watch a trader leave, and take several more with them.
When you decide to leave Hold (which will be right after you get there), they will threaten to sue you for part of your future earnings and commissions you generate at the next firm you trade with. Most of it is BS, but I know many guys who decided to "just stay one more year and finish their contracts because they didn't want the legal hassle and stuff." Well, that cost them a ton of money and missed opportunities with other firms. Anyone who makes you sign a contract is only trying to cover their ass because they know that once you realize how bad the place is, you will want to get out.
i agree with volume....do NOT sign anything. you'd be a fool to get suckered into any kind of non compete. you are entitled to earn a living where ever you chose. they do not offer anything that you can't get anywhere else. they will pursue litigation if you try to leave.