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Can someone help me here please...I need some guidance
- Thread starter 2low4snow
- Start date
Quote from 2low4snow:
No series 7 is required but fingerprint card is, which is a non-issue as I'm not an Axe-Murderer.
Software fee's for Sterling are $250/month or lightspeed is free with an additional .0005 per share.
why?, what's the point?
seems all the checks and balances that actually help and protect you are being waived, and you're supposed to agree with these?
well, do you actually expect to succeed?
can you just prevent losing NOW, and walk away to a more formal shop that actually requires and enforces these license issues?
or are you just so pressed for time to accept these watered down terms?
limitdown, what exactly do you see as the benefits of having a 7? I think that the only thing that isnt required is a 7 at the cbsx firms if they are doing things properly, all traders must have background checks, fill out a u4 and are subject to the same proprietary oversight with the only exception that I can see being the ability to check up on a trader on finra's broker check system by anyone from outside the firm, which if there are no customers involved shouldnt be an issue (the firm I believe can still access all relevant info on the trader.) Not trying to be confrontational, really just curious to know what the benefits are if there are 7's involved.
Quote from 2low4snow
I am about to join a firm and have been presented with two opportunities.
The first is with JC which requires 5k deposit which is locked for a term of 1 year and they charge $3.00/1000 trading on Sterling and have a 100% payout and gives you an initial BP of 200k
The Second only requires a 2k deposit(minimum) and starts you out with 100k in buying power which can be increased, no hold on your deposit and charges you $.20/1000 but only pay's out 65% on amounts less than 10k and 70% on amounts more than 10k.
Mathematically, the 1st makes sense but has your 5k tied up for a year. I am not a senior trader but definitely not a beginner...
Does anyone have any wise wisdom for me to follow?
At least on the first deal if you happen to hit a home run on something you get to keep all the profits. With both deals since the deposit amounts are so low (2k or 5k) more than likely after 6 months you will lose all your money anyways.
I say go for it, not a lot to lose but $5,000 dollars and for maybe 6 months you can get a chance to trade the markets.
The second deal amazes me, so let me get this straight the Prop firm is going to:
1.charge you a commission for every trade you make
AND
2. get a cut of any profits you happen to make
Where can I get that deal from the Prop firm side ??????????????????????????
Never since I been trading has any of my brokers (be it TradeStation, Thinkorswim, E*trade or Scottrade) asked for a cut of my profits.
Quote from ScottSam:
Yeah and I bet they charged you 20 cents per 1000 shares and gave you 50:1 leverage, too.
So what you are saying is that a Prop firmâs best features compared to above brokers are:
1.Better on a per share commission rate
AND
2.Provide more trading money/capital that someone can trade with.
Well if someone is a little resourceful they could borrow trading capital from friend/family, obtain line of credit from financial institutions just to name some of the many different options available to someone.
Someone then could look at brokers that charge commission rates on a per-share (say .005) rate instead of a flat rate.