Think about it. Open Book is not free for Worldco. It cost money. And some trader DON"T use it. So instead of paying for EVERYONE, they make it an entitlement which you have to request. If you would have requested it before they initiated this(There was memo weeks in advance) then you would have had no down time. "only way I would have every gone over there and paid higher rates, crazy bullet rates, using shitty software would be to trade their money. " Worldco has one of the highest payouts on the street.(up to 98%) Some firms like ETG and others keep 50%. Bullet rates are not the lowest on the street but they are fairly low and the system is very quick(go up a bullet within 5 seconds) The software is great for me. I think AT Financial is the best charting software on the street. Plus Belzberg is sufficient for what I do. (DOT) "I wonder if they still take a split even after you put money making it zero risk to them? " I personally think the prop business model is LOW RISK. But they do let you use their money in return for commissions and a percentage of your profits. Every firm is different. Some charge desk fees and make you pay for software and entitlements. Worldco does not. Instead they take 2% - 8% of you NET.(if you have enough capital) So basically the best thing for ANYONE to do is go to the firm which bests suits your needs. IMHO I think Worldco is a decent firm. But other are probably just as good. I just don't understand where some of the hostility for worldco comes from. To me it seems like some guys go to Worldco and get smoke then get "fired"... and they can't take responsibility so the blame others. Rule #1 to trading is to take responsibilities for your losses.
the problem with worldco is the same as the problem with prop trading in general, which is simply the low success rate. People have unrealistic expectations going in. Most newbies will quit or get "fired" ( not really fired because your not an employee ) within 6 months.
From the minute a person steps foot in the door and is asked to pay for their own background check, that should be a sure sign of whats to come- a shifty, slimy ride into a world of frustration and dissappointment.
I think the big advantage with Worldco was the prop deal, but it sounds like they are taking that away now for the most part. It also seems that they do not feel the real prop model is all the low of risk right now since they are changing their focus of bringing people on with no money to having them put up money now. I don't know what they do there if you blow thru your money. Do they still keep you on or do you have to put up more money to trade with? I just know of traders from there that came to the firm I am at and I could not believe the deal they had coming from Worldco. But then again none of the prop traders were making money because of the hurdles they had to jump to take any money home. My whole point really was if you are going to put up money there are a lot better places that would lower your cost of doing business and provide you with your tools to trade without making it a privilege for those you ask management for it. If the were taking all the risk then it is a different story and you have to give up somethings to trade someone elses money. If worldco is working for you then that is great. It works great for some people and ruins others who have potential to be good traders.
I have nothing against Worldco. However there was an error in their computer and they thought I had been there 13 months when I haven't been there 4, so they asked me for 4 grand! Nevertheless they still pulled my belzberg and open book, that is what pushed me over the line. I'm gross up, I do about 25k shares a day (in this mkt) and I'm about 1 grand away from getting a check and I'm net up for the year. I never make execuses for trading, my trades are my responsibility, but why would you limit a profitable trader by taking away his tools??? That makes no sense to me, it's being penny wise & pound foolish b/c you stand to lose more in the end. 80% of my team was axed, yeah that sucked, I liked some of those guys. However why try and topple your remaining 2 guys? NYNY, I did request to keep the open book as soon as they sent the memo out! R u on the 18th at 110 btw? I put a request through compass which was approved by my manager and yet I still have to go to talk to senior management, it's a hassle. I beleive in staying loyal but if they inhibit my chances for being a productive trader I'm gonna have to look elsewhere. On DOT u can only have one order entry up at a time and the quotes on ILX are delayed in case you haven't noticed! Walter's a decent guy. I've spoken to Bright before and he's straight up too. I think pro firms should concentrate more on training their new traders, especially learning the art of short selling. For my part I can say that I have done a few wash sales just to increase share volume b/c I beleive in helping the firm I'm with as I expect them to help me esp. in this market environment. - BMW
am i correct in my interpretation that you have been trading 15k shares a day, are profitable overall, and have yet to receive any income after 4 months ? Did you have to put up any capital ?
Exactly. From what I understand places like Shoney and Worldco are simply indentured servitude. Seems like anytime you run across these cockamamie "gross" and "net" payout schemes noone (except the house) ever get's paid. Dr. Zhivodka
well, I got my stuff turned back on! mgt. never bothered to tell MIS to cancel the order to remove the software off my computer. well, luckily I have some $$ when I was at Schony so I am able to withstand about 6 months of no income. However I am going positive soon, so I'm happy about that.