i know a few guys who switched over to them..the BIG problem they have is that they only pay out once a month and these new(high volume)traders find that unacceptable..everything else is fine but when its all said and done,it comes down to the money you make and once a month does'nt cut it..Chimera is in danger od losing these guys and going to another firm that promised them much more flexibility when it comes to payouts...do most prop firms practice this? the firm i am at pays me whenever i want..that policy makes no sense whatsoever...
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Chimera Capital---a problem ?
- Thread starter executioner
- Start date
i was at an office in NY the other day and there were 5 or 6 guys there from Chimera..they had nothing bad to say but they were very unhappy with the monthly payout schedule so they were talking with the LLC i am with..they can get a payout whenever they want..why would Chimera or another LLC for that matter elect to initiate such a dumb rule..this biz is so competitive and traders should be accomodated to the best of the LLC's ability.again,they had nothing bad to say about Chimers Capital in NYC.its just that payout is the end result traders want and once a month cannot cut it especially if you have a mortgage.
Firms pay more than one time per month? Never heard of this. Which firm pays more than one time
Thanks
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Quote from atticus:
You can't manage your finances well-enough to work with a 30-day payout? Perhaps a daily payout in casino chips would be preferable.
Exactly. Obviously, traders are going to want more flexibility, but there are reasons why some places only pay out once or twice per month. First, it's about risk- if they allow a trader to empty their account whenever they want, the firm is on the hook if that trader has a bad few days or weeks. Say I take a check on the 20th for $20K, then I lose $20K in the last week of the month and decide to switch firms, that firm's eating that $20K loss. If I hadn't taken that check, I would just be at even for the month, there would be no loss for the firm to eat.
Secondly, there's work involved in cutting checks, so it makes sense to limit it somewhat. I'm not saying it's a ton of work, but it's not as simple as just writing out a check. You have to check account balances, account for it for tax purposes, etc. It's easier for a firm to say "we only issue checks on the 1st and the 15th" for instance. Good traders can easily make due with "only" getting paid once per month. The guys who insist on getting paid at any time, I'd be leary of as a manager or owner of a firm.
Man, I want my pay by the hour every hour. Just like I rent a motel room.
payout is simple when doing a fed wire. as far as risk-you only wire the profits and ALWAYS keep in your original deposit. where is the risk there? our firm payouts whenver a trader requests,they just eat the fee's...i must be in the dark because this is my second LLC and both pay out whenever i request..these few guys from Chimera did'nt seem like "fly by night" traders. for them to seek alternatives when they were basically happy with Chimera speaks volumes as to how much emphasis traders place on pay out. as i said,as long as you leave in the original amount deposited,risk is not an issue. Chmera or other firms should pay at least bi weekly as every other job on this earth does..think about it this way,our firm matched Chimera's in commissions and fee's as every other firm would do.their commission rate were average. however,when my firm offers to payout whenever requested,you could see how a trader would make a quick switch..
I've got to assume that in their contract it specifies that there is only once a month payout. I am sure that these high volume traders read and signed this contract before they came to the firm. If they wanted payouts more than once a month or whenever they want, why then did they sign on to this firm? This should be a reminder to everyone, due diligence!!! Know what you are getting involved with.
they did sign a contract and were aware of the payout schedule. that said,when they learned that our firm pays out whenever a trader requests,they became interested. after all,a good trader can rely on a once per month payout but what trader would'nt prefer to be paid once a month. also,as i said,as long as the ORIGINAL DEPOSIT is still in the account,where is the risk in wireing out any profits at the traders expense? there is none.from what i understand is that chimera is a legit firm but eventually they are going to have no choice but to adjust their pay out schedule. after all,its all about customer service and doing whats in the best interest of a trader.just my 2 cents..