http://www.traderequity.com/fees.htm I trade 1m/month - primarly scalp momo stocks $2-$10 range. primarly short side. Was considering Cobra Trading, but still searching a bit and found traderequitiy on twitter (https://twitter.com/TraderEquity) Traderequity is a prop firm, and cobra is a normal broker.. I have no experience with prop firms.. I am mostly concerned about placing my capital in a company resided in british virgin islands if anything. However, I really like the fees, routing etc.. look forward to see what traders here think about it. thanks in advance
Do not repeat my mistake mate. Work with licensed brokers is all I can say (US/EU, doesn't matter). I used to work with a Cayman Island based broker and one bright day they just disappeared. Thanks God I didn't have much money with them. Also, i think they'll take % of your PnL. You should clear that out with them as well. Licensed brokers cannot take % of PnL, only prop firms do.
Thanks man, yea I will stick to licensed as well!.. I read a post here a guy lost like $5m or something with a propfirm .. after that I forgot everything about that idea! .. Not risking a cent with anything offshore. That is also why i mentioned the brokers I did in previous post - to increase the safety with my capital.
I'm with these guys and they are pretty good. Licensed makes no difference imo as you're only covered up to a certain amount if they are. With these guys, you have far less in the account than you would at a broker's so far smaller risk. They offered me $1m fixed buying power for 30k down instead of 250k leveraged at a broker. The wire out is every payment cycle so i'm not having to reinvest any of my cash. I heard the stories before as well but the way these guys are doing it to me seems far better than a licensed broker setup. Yeh they're taking a % of the profits but for the lower risk and lower fees it's well worth it for me.
no street address/ not seems to be regulated + this warning "We DO NOT accept applicants from the USA" I won;t touch something like this with barge pole, " Licensed makes no difference" LOL so 1000 people send $2000 each and broker disappears who is protecting your money? SIPC in USA/ FCA in UK are there for a reason One simple question "Why dont you see properly regulated brokers offering something like this?
It's not a warning, its simply because if your a trader trading someone else's money in the US you need to sit an exam to trade someone else’s money that's clearly why they don't accept US applicants. You also need to sit a US based exam to solict US based traders as far as I know . There is probably a raft of other legal reasons. You laugh but clearly don’t understand that a Licensed makes no difference as most full-time traders will be classed as sophisticated investors in alot of countries anyway and don't receive cover even if licenced. Your trading their money and not your own so that’s a big difference so they don't legally need to be regulated. Simple answer to your question is that is because they are a prop firm and not a broker and therefore have a different business model. Brokers makes money on commission and you trade your own money and they dont care if you win or lose as long as your trading. With a Prop firm your trading their money and they make their money from taking a % of the profits so its in both of your interests that you beat the market. So being a broker is far easier just getting guys in who just churn commission and you don't need to invest any time with them trying to get them to succeed to beat the market. Everyone is different but for me prop is a far more intelligent way of trading full time.
independentThinker444 Hi there, are you still with TraderEquity now? I just came across this prop firm. thanks for you time. good trading!