SMB Futures Tryout - good deal?

  • Thread starter Thread starter Peblo
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Peblo

What do you think of SMB Futures Tryout?

https://smbcapital.lpages.co/smb-futures-proprietary-trading/

Anybody signed up?
It looks different, more serious, than all the other "pay to trade" shops of the world. They have a physical trading desk in NY. They have been around for over 10 years.
But 50% payout? Unless it works like that: initial drawdown allowed: $3k. Trader makes $10k profit, pays out $5k, SMB keeps their $5k AND ADDS IT to the drawdown limit, increasing it to $8k, and so on. Then it is a VERY fair deal. Allows you to actually pay out bigger and bigger profits and having a bigger allowed drawdown without the need to keep a "profit cushion" in the account.
 
Peblo said:
What do you think of SMB Futures Tryout?

https://smbcapital.lpages.co/smb-futures-proprietary-trading/

... Unless it works like that: initial drawdown allowed: $3k. Trader makes $10k profit, pays out $5k, SMB keeps their $5k AND ADDS IT to the drawdown limit, increasing it to $8k, and so on.
More...

The bottom of the page you provided suggests this is not the case: After making $6k, your drawdown is increased to this number. Once you've traded with them for 6 months thereafter your drawdown will be increased to $25k. This suggests there is no link to money actually taken out of the account, although I would be surprised if they would let you dig into their funds for withdrawals...
 
You give up 50% of your P/L for the allowed initial $3K drawdown, you pay $4K/yr seat rent
for being their customer and pretty much trading your own money...I think its a horrible deal, unless you're a novice and plan to learn something and walk away after losing $3K
 
Additional Details

  • There are no time limits for the Tryout. Take your time, manage risk, trade your plan. Your monthly Tryout subscription will continue to renew every 30-days.
Wow free money for them...
All they need to do is provide some basic software
What a great deal
Getting people to compete against hft scalping without any infra advantages
 
moskvich said:
You give up 50% of your P/L for the allowed initial $3K drawdown, you pay $4K/yr seat rent
for being their customer and pretty much trading your own money...I think its a horrible deal, unless you're a novice and plan to learn something and walk away after losing $3K
More...

$4K per year for seat rent - does it apply to remote traders as well? Their website does not mention that.

I sent them my questions - see what their response will be
 
Peblo said:
What do you think of SMB Futures Tryout?

https://smbcapital.lpages.co/smb-futures-proprietary-trading/

Anybody signed up?
It looks different, more serious, than all the other "pay to trade" shops of the world. They have a physical trading desk in NY. They have been around for over 10 years.
But 50% payout? Unless it works like that: initial drawdown allowed: $3k. Trader makes $10k profit, pays out $5k, SMB keeps their $5k AND ADDS IT to the drawdown limit, increasing it to $8k, and so on. Then it is a VERY fair deal. Allows you to actually pay out bigger and bigger profits and having a bigger allowed drawdown without the need to keep a "profit cushion" in the account.
More...

Let me tell you an old fashion tip that you can take to the bank. Any identity that askes you to pay in advance to work is a scam! :sneaky:
 
Just as an informational note, there is the futures prop trading firm business model, but you are going to have to live in the Chicago or NYC area for that.

Futures prop firms that are registered with the CME and ICE are not allowed to risk employee funds - only the firm's capital.

Point being, there are distinct differences between equity and futures/derivatives prop firms.

Peblo said:
What do you think of SMB Futures Tryout?

https://smbcapital.lpages.co/smb-futures-proprietary-trading/

Anybody signed up?
It looks different, more serious, than all the other "pay to trade" shops of the world. They have a physical trading desk in NY. They have been around for over 10 years.
But 50% payout? Unless it works like that: initial drawdown allowed: $3k. Trader makes $10k profit, pays out $5k, SMB keeps their $5k AND ADDS IT to the drawdown limit, increasing it to $8k, and so on. Then it is a VERY fair deal. Allows you to actually pay out bigger and bigger profits and having a bigger allowed drawdown without the need to keep a "profit cushion" in the account.
More...
 
So, are they good and trustworthy enough to commit to this Tryout?
Pros:
- no monthly profit split taken by the firm which brings you closer to the drawdown limit as is the case with other firms
- drawdown limit not trailing
- no "scaling plans" but a decent size and risk limits from the start.

Cons:
- 50% profit split !? - I mean, fifty percent - hard to accept
- no reviews on the web
 
The 50% profit split is fair provided that none of your personal funds are at risk.

There is a regulatory non-compliance history from the SEC/CFTC with so-called "prop" firms in the past that took client funds in which the client meant for funding a trading account and which the firm took as "education" fees.

Peblo said:
So, are they good and trustworthy enough to commit to this Tryout?
Pros:
- no monthly profit split taken by the firm which brings you closer to the drawdown limit as is the case with other firms
- drawdown limit not trailing
- no "scaling plans" but a decent size and risk limits from the start.

Cons:
- 50% profit split !? - I mean, fifty percent - hard to accept
- no reviews on the web
More...
 
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