Prop Firm Terms Evaluation

C

Canuck709

I have been speaking with a firm (toronto) and was hoping I could get everyones 2 cents about the terms and conditions.

$20k deposit (half returned upon achieving positive profile)
20:1 capital provided

Here is how I understood the costs (in order of deduction):

Gross P&L
minus
$3000 exchange fees (est on 1 million shares actively traded)
$3000 commisions (estimated based on 1 mill shares @ $16 aggregate per security per round trip ticket per day)
Then
70/30 split (mine/them)
finally
$1500 platform fees (IRESS trading platform)



Does this seem normal to everyone? Firm was great, people were great, risk department was great and I have received great reviews from friends at other shops but this seems pricey to me.
 
seems like a bad deal... but if the training is really good then its worth it. 20k is kinda high to put up tho imho.

are you talking in canadian dollars? (might be a stupid question) even so, still really pricy.

a much more reasonable deal:

5k up front
8/10 of a penny commission per share
70 a month for lvl 2 data
95/5 profit split
manhattan office
light training

20:1 leverage to start


not that hard to find the above deal.
 
To be fair, perhaps I didn't explain this claerly enough (i used the example they provided). Here is a better explanation

1. Exchange fees - 0.003 per share

2. Commissions - $16 per day for as many trades as you want in a particular security

Does that make it any better?
 
Quote from Canuck709:

To be fair, perhaps I didn't explain this claerly enough (i used the example they provided). Here is a better explanation

1. Exchange fees - 0.003 per share

2. Commissions - $16 per day for as many trades as you want in a particular security

Does that make it any better?
More...

Nope. What they label as exchange fees are actually disguised commissions (google what the exchanges actually charge per share sold). They would be fine commissions in themselves, however, if it weren't for the rest of the deal.

They're already taking $10k of your money automatically. The rest are conditions upon which they will drain the rest of the $10k.

You'd be best putting down $10k at Interactive Brokers, paying $.005 per share all in, and keeping all of your profits. Buy a charting package for $180 a month on top of that, and that's it.
 
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