After you find a good prop firm with all the things you are looking for how do you make sure it is legitimate? Is there any place you can go online to research/check out the firm? In other words is there a "better business bureau" of prop firms? I'm fearing that if I give some of these firms money that I won't lose it by trading it away, but rather that they will steal my money!!
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Checking out prop firms
- Thread starter Maharaja
- Start date
One thing you can do is check out some of the people at the firm by going to www.nasdr.com and doing a broker/registered rep check. I recently was part of a conversation with a man who called himself "director of training" at a big futures prop shop. I had a nagging feeling he didn't know beans about anything. On the nasdr site, I was able to find out that he has had ten jobs in the last ten years, none of which would prepare him to do the job he has now. Also, if anybody will be training you, look them directly in the eye and ask them how much money they have made trading the way they are teaching you. If they trade along with you, you should be OK. If they don't, get ready to leave.
Quote from riley:
One thing you can do is check out some of the people at the firm by going to www.nasdr.com and doing a broker/registered rep check. I recently was part of a conversation with a man who called himself "director of training" at a big futures prop shop. I had a nagging feeling he didn't know beans about anything. On the nasdr site, I was able to find out that he has had ten jobs in the last ten years, none of which would prepare him to do the job he has now. Also, if anybody will be training you, look them directly in the eye and ask them how much money they have made trading the way they are teaching you. If they trade along with you, you should be OK. If they don't, get ready to leave.
Hmm...that's a good idea. Any others? Is the prop firm just stealing my money something I shouldn't be worried about? Am I just being paranoid? Have there been cases where something like that has happened?
Quote from Maharaja:
Hmm...that's a good idea. Any others? Is the prop firm just stealing my money something I shouldn't be worried about? Am I just being paranoid? Have there been cases where something like that has happened?
Uh...yah. Several firms have gone under with no warning to the traders (and in some cases, still were taking money up until close to the time they went under). When an LLC goes under, they can and often will take all money traders have in their capital accounts. In the latest case, Worldco returned 2/3 of trader capital but doesn't seem likely to return the final 1/3.