You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
non-competes
- Thread starter cane1214
- Start date
Quote from cane1214:
do those non-compete contracts that some prop firms have you sign, really have any weight if you decide to trade somewhere else? Do they really have any legal precedent to go after you?
We have something simple about not soliciting our traders for another firm...but nothing (that I can recall) about not letting traders go elsewhere.
FWIW.
Don
Quote from cstu:
Could someone please give a reason why a firm that requires you to make a capital contribution would have a "non-compete" when the success rate for newbies is so low???
Because locking in the small number of successful traders is a better guarantee of a steady cash flow from commissions or profit splits.
-Neo
Quote from cstu:
Could someone please give a reason why a firm that requires you to make a capital contribution would have a "non-compete" when the success rate for newbies is so low???
Hmmm, let's see. Can you say "Van Buren Trading" (spinoff number 1), Echo Trade (spinoff number 2 or 3, can't remember..Hi Jeff and Rob, LOL)...Vtrader (Hi Jeff G and my new pal Mav)...not that they were necessarily a direct spin off....business happens. You just don't want someone grabbing your list of traders and bugging them to leave, bad business practice (trust me, it's happened a few times, but for the most part, our guys were faithful, or returned after a bit). We don't really mind "open and fair" competition, in fact we seem to thrive on it.
Anyway, long answer to a short question.
Don
They are not worth the paper they are written on from a legal standpoint. There are loop holes in all of them and if some firm wants to take you to court to prevent you from making a living let them.
That being if you developed anything that can be deemed proprietary then you are screwed from a legal perspective. The development of any system, software ect. while employed is NOT yours when you leave. If you are just flipping futures or stocks you are fine.
That being if you developed anything that can be deemed proprietary then you are screwed from a legal perspective. The development of any system, software ect. while employed is NOT yours when you leave. If you are just flipping futures or stocks you are fine.
Quote from artis74:
They are not worth the paper they are written on from a legal standpoint. There are loop holes in all of them and if some firm wants to take you to court to prevent you from making a living let them.
That being if you developed anything that can be deemed proprietary then you are screwed from a legal perspective. The development of any system, software ect. while employed is NOT yours when you leave. If you are just flipping futures or stocks you are fine.
Well put.
Don