Getting started with a Prop Firm (My experience - ongoing!) Lake Street Trading

[astutej]

Please share the following:

1. What are their commissions & software fees?
2. What is the profit split arrangement they are offering?
3. What has Lakeside said regarding SEC crackdowns on LLCs such as theirs?

Quote from Dusky323:

My research was all internet based. Mostly googling various prop firms with the word "scam" and stuff like that I didnt make any phone calls or anything of that sort. What I did discover is there was little information available on the internet for Lake Street and the others I was looking at. So I decided to throw 5k at them and document it, even had intentions of doing the same with other companies. I'm getting all the information as I go and if I lose 5k doing it then I'm fine with that. Hopefully if I were to lose it, it would be from my own poor trading and not from someone packing up and closing the doors with my money but time will tell.

With my 5k deposit I received 35k in daily trading pwr and 10k for overnights. I made 24 trades my first day lol so at the very least im having fun.

 

[MoneyMatthew]

So you are getting 7 to 1. Well keep telling us how it goes at Lake Street.

You are going to get lit into for not doing any research and not even carring if you make money or not. Heck you did not even call them once on the phone before you opened an account?..wow... At least you are being honest about that.

If you dont care about the money then why not go to a place that can offer more leverage?

At least give yourself credit for playing the right game (which is trading stocks) instead of eminis and forex.

 

[Dusky323]

Quote from astutej:

Please share the following:

1. What are their commissions & software fees?
2. What is the profit split arrangement they are offering?
3. What has Lakeside said regarding SEC crackdowns on LLCs such as theirs?

1. commission: $6.50/trade (or .0065/share)
software fee: $125/month. refunded if 80 roundtrips/mo are made

2. No profit split

3. Haven't asked

 

[Dusky323]

Quote from MoneyMatthew:

So you are getting 7 to 1. Well keep telling us how it goes at Lake Street.

You are going to get lit into for not doing any research and not even carring if you make money or not. Heck you did not even call them once on the phone before you opened an account?..wow... At least you are being honest about that.

If you dont care about the money then why not go to a place that can offer more leverage?

At least give yourself credit for playing the right game (which is trading stocks) instead of eminis and forex.

I didn't make any phone calls while researching. I on-line chat'd with my contact from Lake Street before I filled out the paperwork. I called this same guy before I wired the money.

Don't get me wrong, it's not that I dont care about the money, if I really felt I was just throwing it away than I clearly wouldn't have wired it. However, if something does happen then at least its just 5k. I'm not anticipating anything happening so its easy to say, if and when it does I'll be more like "holy shit! I just lost 5k"

There is a penalty for closing the account within the first 3 months. When 3 Months get closer, I may look into other options. I know so much more now than I did before I started this thread.

 

[astutej]

I like your attitude towards this endeavor, it can be interpreted as positive marketing or shilling for the 2 companies you mentioned, which explains the assault on your decision making process.
After the MF Global experience, trust & confidence in licensed firms have taken a huge hit & caution is in the air.
Please continue to blog out your experiences.

Quote from Dusky323:

I didn't make any phone calls while researching. I on-line chat'd with my contact from Lake Street before I filled out the paperwork. I called this same guy before I wired the money.

Don't get me wrong, it's not that I dont care about the money, if I really felt I was just throwing it away than I clearly wouldn't have wired it. However, if something does happen then at least its just 5k. I'm not anticipating anything happening so its easy to say, if and when it does I'll be more like "holy shit! I just lost 5k"

There is a penalty for closing the account within the first 3 months. When 3 Months get closer, I may look into other options. I know so much more now than I did before I started this thread.

 

[textrader4]

Be careful!!

I also called them before I decided I wanted to treat this as a career and actually take the Series 56. When I asked them if my money was in an SIPC insured account they said yes and that their banking is FDIC insured...so I shouldn't worry...what a joke. I asked him to put that in an email and he never did. There is another thread about calling the SEC and asking about these firms. I can't search for it now but will post it later.

 

[EvOTrAdEr]

Quote from textrader4:

Be careful!!

I also called them before I decided I wanted to treat this as a career and actually take the Series 56. When I asked them if my money was in an SIPC insured account they said yes and that their banking is FDIC insured...so I shouldn't worry...what a joke. I asked him to put that in an email and he never did. There is another thread about calling the SEC and asking about these firms. I can't search for it now but will post it later.

SIPC insurance on a highly leveraged trading account?

I posted the other thread about SureTrader. It was a joke for those of us who have been in the business a while. Your money is not going to be insured unless it's in a retail account, limiting you to 4:1 and PDT.

Just clearing up the facts. Never dealt with Lake St. myself so I can't comment on how they run their business.

 

[EvOTrAdEr]

Quote from EvOTrAdEr:

SIPC insurance on a highly leveraged trading account?

I posted the other thread about SureTrader. It was a joke for those of us who have been in the business a while. Your money is not going to be insured unless it's in a retail account, limiting you to 4:1 and PDT. That goes for both US prop firms and for off-shore trading firms.

Just clearing up the facts. Never dealt with Lake St. myself so I can't comment on how they run their business.

 

[Dusky323]

Quote from textrader4:

Be careful!!

I also called them before I decided I wanted to treat this as a career and actually take the Series 56. When I asked them if my money was in an SIPC insured account they said yes and that their banking is FDIC insured...so I shouldn't worry...what a joke. I asked him to put that in an email and he never did.

The bank that I wired my money to is Citibank and the e-mails I received stated that my money would be in a Citibank account. That is the only information I can see as far as what bank is being used.

 

[roreilly]

I am enjoying your posting very much. Thank you for contributing.

How is the trading going? Are you directionally trading stocks? Margin is great if you are profitable, it will blow out your account quicker if you are not.

Best of luck.