Quote from bigpapi:
Please someone tell me if Im getting ripped off:
7.5k deposit
.0055 per share (1k shares=5.5bucks) + ecn fees - ecn rebate
95% payout
20x Leverage, which can be increased
1year hold on my $$$
Payouts once a month
If after a couple of months Im profitable, I am given the option to be backed up by the firm, with a 75/25 split
No series 7
Free Lightspeed platform and 175.00 data fee per month
Remote trading
No training offered
7.5k is prob a tiny bit (2.5k) too much, especially if you're a newbie but not crazy.
0.0055 - is nothing to write home to mama about, but, u have 0 volume right now (im assuming) and for them to at least recoup the time spent with you the have to make a few $. Plus on volume it doesn't matter to much.
Im sure once /if your volume picks up you can renegotiate.
95% is a regulatory #, they can't do 100%. Maybe their attorneys decided that 99 or 98 is too close, or they made a business decision that under the cover of regulatory to shave a few points - not a huge deal, unless you start making major $, and even still..
after being positive - rather go for the full payout not a split. If your profitable and their risk guys think you are safe, whats the point of giving up an extra 20% of your profits? once you start losing they will cut you lose very very quick and will be right.
20x is excessive for a beginner, and for most people in general. on 7.5k itsn ot bad, but i would stay away from firms that give out excessive leverage. They blow up. Big time.
All these cowboys that yell leverage leverage - if they are getting it now - I'd be worried. someone will (high probablity) blow the firm up. And then it'll be AB WATLEY, BROADWAY, WORLDCO, etc etc etc all over again.
Its not a good deal, its not TERRIBLE. could do better - but again, on small volume the $ won't make big difference.
I'd just be worried about the excessive leverage.
