the part on the tradeoff of higher commissions for not having capital is accurate, for the most part...worldco is probably the exception, since they can offer rates as low as anybody else. note: i do not work for them.
They do offer a sliding scale if you put money up, or trade for a while. But if you think about it...after you've traded a while, you DO have money up...whatever extra commissions you paid Plus whatever profits they have of yours. Instead of thinking about it as "putting money up" you could think (with our firm) as putting up money you already made...same thing in the long run, only you get to keep your profits, and no "golden handcuffs." (contracts) Many have come here after WorldCo, and I am sure some who have not done well have ended up there....not big deal....at least WorldCo is still around, won't be able to say that about some of the others. "Free Enterprise" Don
As long as each trader has a seperate capital account that belongs only to the trader, then that trader has personal funds at risk. The exception would be your first day on the "job" starting with a zero capital account, but the firm will retain your earnings and deposit them in the capital account until a certain level is reached. Either you put up money, or you work for nothing until you have accumulated enough earnings in your account. You will have personal funds at risk one way or another.
Pervious post is somewhat true..but not 100% true. Yes..Wldc has some minimum capital balance they want you to keep eventually. But they dont take 100% of your profits until that amount is met. They will pay you part of your profits while you are building up your capital balance. I would think that all other firms operate this way. How can they expect traders to make a living unless they gave them SOMEthing during those lean first months. At Wldc, when you start making money, they take a certain % of your profits towards your maintenance capital, certain % towards your "deferred capital", some % towards the split between youa dn the firm and, finally, certain % to you. Sounds like a plan.
well, i think treykool must be full of it because he makes claims of making good money, people call shenanigans on him (basically call him out and say he is full of shit) and where is he to reply? funny how the guy who started the thread won't reply to people accusing him of geing a liar.....so, set the record straight brother- or has risk manangement got your balls in a vise grip and you have been silenced??
At Worldco, a trader gets nothing until he or she has built up a capital account of $4,000. Then, up to 22.5% goes to a deferred account-an account you won't receive for 13 months (and will never receive if you leave- and the rest (50%-deferred account) goes into the capital account until a trader reaches $50,000.
Thats because he didn't. See link. Don't believe......just pick up the phone and call them. Managing director at the NYC office will tell you. http://www.worldcollc.com/Models/Model1.asp?sl=jobs&ml=equitytrader -momo
I don't know if they changed it or what, but our guys are getting paid right away, as soon as they turn net positive. They are holding about 20% for the capital balance. You are right about the deferral, though.
I am sorry but that commission really bites for a scalping strategy. Apparently you aren't aware of other firms with no capital requirements and almost non-existent commission for scalpers, no desk charge isn't a biggy , because if you do pay one you are a fool !!
What? This is much worse than I heard from other WorldCo people...are you sure? I knew they were screwing around and holding money, but not this bad....I don't think this is typical. Don