It doesn't. Those firms are like the dealer at a poker table. They don't care if you make money. Their goal is to suck your deposit through commissions (rake).
Futures Proprietary Trading
- Thread starter aetrade
- Start date
It doesn't. Those firms are like the dealer at a poker table. They don't care if you make money. Their goal is to suck your deposit through commissions (rake).
@aetrade
I dont have too much details, I never traded with any of them. I decided I prefer to stay completly independent.
TTG for example does not provide backing of traders. All traders have their own funds down. But as well as individual traders at TTG, they also have groups of traders, some of which will provide direct backing. Minimum funds they require is about 20,000 GBP. Depending on the leverage you require you could expect to be on a profit split of 80/20 in your favour. But it is decided on an individual base, they have people with that level of funding that pay no split and also people with 10x that funding on the same split.
Arfima Trading in Madrid on the other hand work also with independent traders, but the company usually shares a part of their risk.
I think if you are really interested, it is best if you just contact a few of them. Usually they will give you all the info you need and you will soon find out if they are potential match for you. I was also considering this option a while ago, but not so much for the leverage or the knowledge they could offer. I was mostly interested in the fee structures they could offer to their traders. But these days there are so many possibilities to get your total roundturn fees low enough (<1 EUR for EUREX products, <1 US$ for CME products) to make very shortterm strategies net profitable that I prefer to stay 100% independent.
side note: If you're offered to be buy into the firm and become an equity holder it probably means the captains are leaving a sinking ship.
100 percent accurate.