payouts & other stuff: newbies

T

tofenomeno

Hi, I have agreed to join a prop. firm with $5K cap. contribution and 95% payout (and $.01 comms. which is high, but I have a good feeling about this firm and could renegotiate later).

How and when is the 95% calculated?

Say for example I make $1K on the first day, do they take 5% of that immediately? Or do they wait until the end of the week? Or month? Or do they just wait until I ask for a withdrawal for them to take the 5%?
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Another question, besides commissions, their take of the payouts, and software fees, what are other fees or expenses that I should look out for? i.e. are there maybe any regulatory/exchange fees, taxes, or anything like that? I will be trading mostly NYSE.

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And another thing, reccommend a good book that teaches how to trade NYSE. maybe a tapereading book (that would still be relevant following the new procedures, which changed somehow but I'm not sure how exactly).

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Finally, I would be a buyer of energy 4 tomorrow and I also think AAPL will go down 5%+. I haven't seen how it's doing after-hours, so maybe it's already down, but I don't know.
 
that was for the first line i read,, which i still strooooonly suggest you take my advice,, as for the other questions, the 5 % would most likely be taken out end of month, or per pay period,, and yes you will be paying ecn fees, sec fees, and more, so like i said run from the .01 comm,, fast. and there are tons of books,, the best way to learn however is doing, so maybe pick out books on the subjects your having issues with once up and going,, but psychology is a huge factor so books and sites on that will help a great deal,, your not only fighting the market,, but even worse yourself,, i trade nyse, and am successful for anyone that assumes im a reject giving advice, but gl,, and please try to make it to a firm with no money down to start, or paper trade, or something,, and again, IMO.
 
I would run from your firm bro, I wouldnt want my money up (or my profits held btw pay periods) with a firm with such lax deposit requirements. I would be worried that they could get blown up on any given day!

Quote from n1proptrader:

i have 99% payout and paying $1.50 per 1,000 shares (vs $10 per 1,000)...you are getting ripped off....and my deposit was only $1,000....I agree, RUN....
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hmm.

i visited four firms and made my decision based on training and the trading platform (and plenty of research on firm respectibility and positive experiences).

my money won't be tied down (i.e. for a year), so i can leave whenever i wan't -- but i do wan't to try this firm out. just got a good feeling.

i do plan to renegotiate stat after the first couple of months, assuming i do see that trading is something that i could excel at and make serious $, because maybe trading isn't be for me after all!!!

but, again, i will try trading out. $.01 comms to start with, 95% payout, and even a software fee that i am embarrassed to mention.

i'm dissapointed that there are ecn and regulatory fees that i wasn't aware of. i will need to research that and put that in the equation.

so thanks for the information guys.
 
So with $1000 up (like you said) and 20X (like you said) that means you only have 20k BP right? But on another thread you said you do 80k-100k a day, I am assuming you are trading really cheap stocks right?

Quote from n1proptrader:

I'm trading with them from october....my friend (who refered me to them) trades with them remotely for about 1.5 - 2 years.....so far no problems. they offered me 20 x for equities and 10 x for options.....
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yeah, to keep up any sort of anonomity left i will not be able to disclose the name of the firm, just that it's one of the top national firms and mentioned on ET a lot.
 
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