The traders have always had the opportunity to grow their account sizes and from what I understand some of them indeed have. The traders do receive a $25,000.00 or $50,000.00 account. The account has shared margining with the master account and all losses have to be covered by the master account.
Earn2Trade Founder Charged With Fraud
- Thread starter LCK2000
- Start date
The traders have always had the opportunity to grow their account sizes and from what I understand some of them indeed have. The traders do receive a $25,000.00 or $50,000.00 account. The account has shared margining with the master account and all losses have to be covered by the master account.
Yeah, you got it. E2T management is obviously receiving kickbacks on the commissions--that is if any are actually being paid. For all we know it's how they got the FCM to play along.
Dude... shared margining? I can't believe what I am reading. So it's variable. You cannot help but contradict yourself. Your statements directly contradict. You should have this thread deleted or close your doors. There are no other options.
These "Pay2Play" firms are not true prop firms and they know it.
In fact, I don't ever think that anyone of them have ever claimed such.
They are labelled as prop firms in this EliteTrader section.
More than 95% of their revenue comes from monthly sub fees and the remainder 5% comes from traders who "actually" are decent risk management traders from which they derive 20% of trading profit --- it's a great business model.
No need for shady tricks since the overwhelming majority of traders will blow themselves up due to the tough evaluation parameters -- so a trader who can pass and consistently make profit is a gem to them.
There are pros and cons to these P2P firms and just like in the general world of trading (and life), only those who deserve to "stay" will stay.
In fact, I don't ever think that anyone of them have ever claimed such.
They are labelled as prop firms in this EliteTrader section.
More than 95% of their revenue comes from monthly sub fees and the remainder 5% comes from traders who "actually" are decent risk management traders from which they derive 20% of trading profit --- it's a great business model.
No need for shady tricks since the overwhelming majority of traders will blow themselves up due to the tough evaluation parameters -- so a trader who can pass and consistently make profit is a gem to them.
There are pros and cons to these P2P firms and just like in the general world of trading (and life), only those who deserve to "stay" will stay.
That is completely false. E2T does not receive any kickbacks on commissions for trades, and commissions are absolutely paid.
Earn2Trade makes its money from the subscription fees of the examinations. It is not a mystery. There are no illusions to dispel and there is no smoke in the air. The company has been transparent about the way it makes money from its first day of business, and sees no conflict in generating revenue from examination subscriptions.
The FCMs are interested in working with the prop firm because it can bring substantial trading volume generated from its traders. With over 500 traders having passed the examinations in the last six months alone, it is not a surprise that an FCM would be interested in working with the prop firm for the commissions it would generate.
So ,$25,000.00 or $50,000.00 account. real money? or notional? so with a 25,000 a/c with your special relationship with FCM a trader should be able to Day trade say at least 25 ES contracts witha $1000 margin per ES and overnight perhaps 2 ( 12500 margin per ES?)
-More than 95% of their revenue comes from monthly sub fees and the remainder 5% comes from traders who "actually" are decent risk management traders..LET THEM SAY THAT and see what happens then!
The prop firm keeps the profit from the profit split of the traders, not Earn2Trade. The prop firm keeps 20%. The trader is responsible for their own exchange fees.