Props and Non-Compete Agreements

[flowtrader88]

Hello All,

First post here and thought i'd be the devils advocate. I'm sure many on this board have similar questions.

I spoke to a few props which required capital contribution, offer no real training, and require you to sign a non-compete agreement.

Now this is absurd to me - why should we and why would a prop firm require us to sign a non-compete which restricts us from working for another prop for x years if we paid a deposit and they don't provide any training? If someone has to close their account due to poor performance, they have to refrain from prop trading for x years altogether? That doesn't really sound fair...

Also, how in the world would a prop firm know if we started prop trading elsewhere? Do they stalk their ex-traders?

Maybe someone can shed some light? I know many prop firm owners read this forum (i.e. Don Bright), so maybe you guys can shed some light.

 

[T-Bone Trader]

If your prop firm offers no hardcore training and "know-how" coaching then you should not be signing a non-compete agreement.

If, on the other hand the prop firm helps you navigate and adopt their trading secrets then you should be signing a non-compete agreement since you can just leave and give away their trading ideas to another firm.

I signed a non-compete agreement thus I get some real insights into my coach's personal trading system. So I definitely don't mind. This is probably the only reason I'm making money recently. Up a few hundred already this morning! Time for a trading break.