This does not upset you a little??? If you have just 2 HUGE months a year and make say $15to $20k and turn around and pay out that much profit. To me this is the BEST Benefit of Prop trading: a lot of capital to trade with, then have a great month with 100% profits paid to me!!!!!
Im very happy working at Title Trading. Yes i give up a decent chunk to them, but I personally think it is worth it though. I trade with over 30 million intraday buying power, have basically no stop out (not supergay MPP like swift), pay basically 0 commission, have no deposit with them (other than 1 month in arrears pay, pseudo deposit), and Title is a B/D not working for/through anyone else. I call HO to talk to George, he listens to me, responds to me, and i get to talk to the source. No BS. Its not a one man show where they can close up shop and screw me. Like swift, its fairly corporate. Swift and Titles best asset is you know your going to get paid. When Title owes my branch 300 or 400k, i feel good knowing some idiot in some other branch losing 500k isnt going to make it so i dont get paid. Thats the risk of the 100% place that pays mid month or even first week. Its 20:1 BP, so you put up 40k, get 1m bp, go long 60k MBI, and whoops! Halts and opens at 5 bucks down 780k! I mean sure, its not likely, but you never know. Im not going to risk it at this point. Prop firms are just like a trade... risk/reward. There is nothing wrong with 99% of prop firms imo, just depends how much risk your willing to take. Also just like a trade, my perceived risk is only that, perceived. I could be the biggest idiot on the board making decent money and giving some up... who knows, just 1 guys opinion.
"Right now, my commissions with fee's, trading NASDAQ, I'm paying ~.008 a share. That seems like a competitive rate. Don't believe what you hear about other places charging lower rates. They don't exist.
Read the most recent post by Szeven. Trading with a prop firm, or for that matter a 'psuedo prop firm' (one that requires a deposit) is a value proposition plain and simple. Szeven's post does an excellent job in my opinion explaining why he sees this as a value proposition and why he trades prop. The truth is that no matter what business you are in, and trading is a business, you have input costs and without them you can't run your business. Prop firms provide many ofr the inputs required for those who are a part of them to be in the business. Prop trading is unique (true prop anyways), in that you are simply partnering with a firm who is giving you something virtually turn-key to get into the business of trading and all that is required in return is that you split the profits. Not only that , should you have a failure, your partner, the prop firm is eating 100% of the loss. How many other businesses are there where you can do that. It is true, not all firms are created equally, and one needs to be selective about who they 'partner' with , but if you are partnered with a good firm the value proposition is evident. Szeven is a perfect example of how it can work. He's the real deal, no bullshit, you can look up his P/L here on this site and if a guy that earns like he does is willing to a split on his P/L you can be certain that he finds value in it. He recognizes the benefits he gets from being part of a group that can provide him with certain things, be they ultra aggressive commissions, large BP, good support, or just peace of mind that his risk exposure in 'blowing up' is limited to payments in arrears, it has a value to him and he is comfortable in what he gives up for that. It is not for everyone, and as he states, even those who trade prop may have other accounts in place that are structured differently. Bottom line is this, there are reasons to be part of a good prop firm, and getting 100% is not always all its cracked up to be, you know.................. it takes money to make money, rather get 50 % of a million than 100% of nothing, and all those other cliche's. Auto
but to answer the original question of "when do i ask for a better deal".... ask when you think you deserve one. if you have been wih your frim for 3 months and they make a couple hundred dollars a month off you.....probably not a good time to think you should get more money. now if you have been with them a year and they are making a few thousand or more off you a month.....you probably have some leverage to ask for a better deal. doesnt mean you will get it........but if you think you deserve it then ask. and if your firm says no....go looking else where.....there are hundreds of prop firms you can trade with. do some research and figure out which one is best for you.
Good post Mr. Szeven. A fair and honest answer to my question and heck if Title Trading has good people like you working for them it does shine a good light on Title Trading.Thank you.
Are there any firms like Title in the USA? Most prop firms in the USA seem to be the kind that requires a deposit. What a benefit to be able to trade size and not be liable. I bet at most props if you lose 200K they will come after you for it.
LOL, Ya , that is another thing with good prop firms. They monitor risk appropriately. They establish appropriate parameters with their traders and monitor accordingly. If you are in a position where you can take 200K losses then you of course should be pulling down some large numbers and it wouldn't represent an 'outsized risk' for the frim. Don't get the impression that good firms hire cowboys, give them a whack load of BP then hide under the desk with their fingers crossed hoping that they don't blow up.