Hi All, If you already have enough trading capital, is there any other reason for going pro (ie, joining a professional firm such as EchoTrade) that justifies the cost (higher ticket charges, sharing of profits, anything else?)? Just wondering. Thanks. -- Punter
Bullets, opportunity to work with traders superior to anyone you have ever met in those chat rooms, margin to trade bigger size than you possibly can on your own, someone else to maintain your equipment / software. Not to mention, think about it, a super size trader at my firm has like 35K of his own money in firm's account, and he gets like 95%-98% of what he makes, and he can hold a few million's worth of securities at a time, and lose that 35K and more in two days. I call it insurance money, if you do blow up, it is firm's money, not yours, and think about other benefit, you don't tie up your trading capital and you can invest it in something like say real estate. Not to mention a K1 form for easy tax accounting, the opportunity to network with other traders, start your own trading desk, etc . . .
In addition to Hitmans good explanation I would also suggest that you look at the type of trader you are. 10:1 margin is most effective if you are a true day-trader or at least have few overnights. If your typical trade lasts more than a day, you could argue that the difference between the typical retail 1:3 vs 1:5 pro-leverage isn't significant.