I thing what is desperately needed for the Prop Industry is a third party evaluation of some of the TOP Prop firms that actively recruit traders. Finding a list of Prop firms is not a problem but there is no really good forum that assesses both the strengths/weakness of each firm. In reviewing Smart Money's survey of the best brokers an investor can review a third parties display of what they believe are the strengths/weakness of the Premium/Full Service/ Discount brokers. Also a trader can logon to all these brokers websites and review their: 1. Commission rates 2. Margin requirements 3. other features trader might want to learn about. In searching for a review of Prop firm evaluations similar to the ones produced by Smart Money/Barron's annual review of online brokers one is not found. Also going to Prop firms website usually yields very little information about commissions cost, margin rates, etc. etc. It would seem like if you are one of the TOP Prop firms an annual review of your services would be welcomed. Free advertisement and a claim the you are in the top 10 could help these top 10 Prop firms recruit new traders. If you are a bad firm you might chose not to participate. People would then wonder why and wonder if this firm has problems associated with it that it does not want to divulged or reveal. Traders would be able to evaluate firms. Does trader want to go with Prop firm that has higher commission rates and provides higher leverage OR go with firm with low commission rates but has lower leverage. Trader could chose Prop firm with no training or a Prop firm with weeks of training. At least if a survey/review was done some of the misinformation could be cleared up. Also what different features Prop Firms have to offer would be revealed, hopefully better able to align a trader to a Prop firm to have a better fit.
A kid who used to post here- JMowery, tried putting something like that together. I'm sure someone here remembers the link to his site...
I am pretty new to EliteTrader...but eagle488's entry is the wisest thing I've read... he is on the money. Rarely in life has a deposit been returned without a fight, struggle, or resistance. If ever ... My impression so far in my search is that some firms are focused on getting 5K, which tells me the focus is not on winning trading but on hedging risk.... other firms do the same but under the guise of 'training class' fees... and there are firms whose goal is to produce winning traders trading firm capital... maybe I am off but these are my impressions so far...unless I am independently wealthy with money to waste, or a super trader, it makes no sense to put up 5K to learn to trade. There is no urgency for the firm to help me become profitable.
If I do lend then I always lend amounts I can afford to lose as a kind of litmus or patch test. 1)If the person didn't pay you at all. 2)Didn't pay you on time without notice. 3)Didn't pay you without undue aggravation, chasing and hunting them down. AND... This person actually had the nerve to ask you for another loan again!!! Well, you can always say... "Did you pay the first loan I gave you or when you said you would? ...but before you give your answer consider the answer to that question and you will already know my answer to your request for more money" Another variation of that is... "Give me an honest answer to this question; would you lend money again to someone who didn't pay you the first time or didn't pay you on time or made you chase and hunt them down?"
you bring up a good point as far as personal affairs go... but were talking about business here. I don't consider a deposit of 5K, or 10K, or whatever K, with a trading firm the same as giving my mother a couple of grand so she can enjoy herself on a cruise. Call me crazy ...
Elite Trader can police these firms... If an individual does not receive their deposit...or has trouble getting paid... Then immediately post the name of the firm and the individuals responsible... These people should not be in business...
Your assumtion would be correct Rearden......thats right Libertad thats the best we can do .....warn others and turn them on to this site .
this post was about prop firms stealing money from traders by not returning deposits. so whats the deal? does it happen alot and how can you avoid it?
Happened to me. Took 3 months and several dozen hours of time writing letters and emails before I got my money back. Despite that effort, I consider myself lucky. Bottomline: only sign-on with the reputable firms.