Is that challenge prop business model sustainable ? Discussion

Laissez Faire said:
Pretty sure you were one of the guys who went pretty hard on me when I spoke out against them in the past…
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True, and I was wrong :D:banghead:. That's before I knew how royally they were going to f$ck their clients.
I guess I was a lot more naive back then, but I am glad I don't have an account with them.
 
p0box4 said:
True :D:banghead:. That's before I knew how royally they were going to f$ck their clients.
I guess I was a lot more naive back then, but I am glad I don't have an account with them.
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Apex is a bucket shop which keeps you indefinitely on simulator. I was only pointing out the obvious from a logical viewpoint.

Contrast that with Earn2Trade which puts you on a live account as soon as you hit 5K. Topstep does something similar.
 
Laissez Faire said:
Apex is a bucket shop which keeps you indefinitely on simulator. I was only pointing out the obvious from a logical viewpoint.

Contrast that with Earn2Trade which puts you on a live account as soon as you hit 5K. Topstep does something similar.
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Yes and you were right :).
 
TrAndy2022 said:
Do you think that the Ponzi like business model from challenge prop firms, where challenge fees collected from props are used to payout all profitable traders, is profitable longterm for the prop firm ?
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Yes if the prop firms resists the temptation to cut eval prices too much.

A good example is TradeDay, they will be around as they value survival instead of going after exponential growth by slashing their eval prices (like Apex).
 
Coin Flip said:
Yes if the prop firms resists the temptation to cut eval prices too much.

A good example is TradeDay, they will be around as they value survival instead of going after exponential growth by slashing their eval prices (like Apex).
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I agree. I also saw that TradeDay seems to limit how often one can try and qualify for a funded account, which I personally think is a good thing.

I can't even begin to imagine how much money some people spend on these kind of companies to chase a dream.
 
p0box4 said:
And until that day comes I am happy to make money with/from them :).

If Topstep was doing anything wrong the regulators would have knocked on their door a long time ago, as has happened with other firms.

By the way, how soon is sooooon since I've heard that for many years now.
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Table can turn on you also, you could be one of those thousands who loos the TEST fee ... very unethical business model, True prop firms don;t need these gimmicks
 
traderjo said:
Table can turn on you also, you could be one of those thousands who loos the TEST fee ... very unethical business model, True prop firms don;t need these gimmicks
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Did you know that only a few % of traders a lot of "true" prop firms are profitable? Such as at SMB capital, and that they pay huge fees as well to sit there ...

According to T3s annual report in 2012 99,89% of their revenue was from trading fees and monthly fees as well. Back then they charged $1000 a month.

I wouldn't say it's unethical, since everyone (should) know what they sign up for. It's not their fault that most (99%) traders who sign up with firms like Topstep don't know what they are doing. Is it unethical that they payout a lot of traders with the income from losing traders fees? I don't think so, everyone knows, or should know what they sign up for, it's a business model like any other, as long as they do as promised for those that doesn't fail, which they do (so far). You also receive a live funded account after I believe a minimum of $10K of profits in the simulated funded account, so then the ethical question also goes away since at that point you are trading the real markets and are bringing in real $ for Topstep and yourself.

I already received a few thousand in payouts, much more than I every put in, so I have nothing to worry about.
 
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