Contracts - Pay the balance of £200,000??

J

jtrend

Hi.....I have just received an offer from a trading firm. I am 21 and recent grad. Upon reading the contract it says that should I leave within 3 yrs and have not made the company £200,000 (£400,000 with a 50/50 split) then I must pay the balance (so they get at least this amount out of me).

Is this normal?

I think I'll be a good trader but if something went wrong and I didn't take to it and wanted to leave they'd expect me to pay up. Is this enforceable? Surely as long as you don't lose the company's money they can't do this. Where would I get that sort of money from? Any help......

Many thanks
 
Do not sign this, if this firm has real capital behind it there wouldnot be such a stipulation, do yourself a favour and look elsewhere, i emailed you with some suggenstions
 
Quote from jtrend:

Hi.....I have just received an offer from a trading firm. I am 21 and recent grad. Upon reading the contract it says that should I leave within 3 yrs and have not made the company £200,000 (£400,000 with a 50/50 split) then I must pay the balance (so they get at least this amount out of me).

Is this normal?

I think I'll be a good trader but if something went wrong and I didn't take to it and wanted to leave they'd expect me to pay up. Is this enforceable? Surely as long as you don't lose the company's money they can't do this. Where would I get that sort of money from? Any help......

Many thanks
More...

this sounds like refcos deal. if it is it is scary, u r a bound slave for 3 years.
 
thanks everyone.....i got the contract this morning and am awaiting two others from other companies. I thought this was a bit suspect but wanted to see if all the contracts were like that. I wasn't sure if this was normal or not. I understand that companies want to deter you from leaving to trade for another firm but this seemed bizarre. Has anyone else been offered these sorts of prop firm positions with similar dodgy contracts/trading agreements?

I'll email you jaketrader...
 
I think these types of contracts are like signing your life way.

What happens if you start with the firm and they don't give you enough leverage to generate that type of return. Even if you're successful, you'll still owe them.

Contracts should be fair for both parties, if they are not fair for both parties, then you're being exploited.

Runningbear
 
First I would sign this either. There are too many other options out there and basically leaves zero incentive for a firm to keep you happy if you started making the money. Although these are jobs it goes both ways. Also I am assuming this is only if you leave them to go work for another firm and not if you quit trading after a year (although I would be shocked if that was the case and pretty sure not legal).
 
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