What do you think of this deal ? (Futures prop firm)

Quote from bone:

That's all pretty standard. Including the desk fees.
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Standard? Traders shouldn't have to pay for desk fees. That's just smack of outrageous I think...
 
Misctrader, I think our discussion was about Tradelink and not Matrix. Most futures prop places charge around 2k for the desk fee, but it comes out of your earnings. I think what's more important is the commissions they charge. You should be trading for cost or near cost if it's a good futures prop firm.
 
Quote from okwon:

Misctrader, I think our discussion was about Tradelink and not Matrix. Most futures prop places charge around 2k for the desk fee, but it comes out of your earnings. I think what's more important is the commissions they charge. You should be trading for cost or near cost if it's a real futures prop firm.
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yeah, you are right. Tradelink. It has been over a month. But I also talke dto Matrix. Yeah, I'm confused.

I guess if it's coming out from your FUTURE income streams then it's NOT too bad. I wonder if they take remote traders from teh US to trade the London market? haha.
 
I think there's a place in Chicago that offers a similar deal. 50% payout with no salary. I think they'll allow you to go remote too.
 
quote from okwon :

Actually $2000-$2500 per month is pretty standard at futures prop places. Data and platform fees come out to quite a bit. CQG and TT are not cheap. At $2500 per month they are probably making a few hundred off of you.
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Excuse me ... but CQG and TT cost less than $1500 in most cases. The prop firm stands to make $500 to $1000 per month in desk fees in addition to marked up commission charges.

BTW, the prop firm still wants to keep 1/2 of your monthly profits. I'd say they could possibly do quite well.
 
this seems a bit high to me. last time i looked (in y2k) the desk fees were up to 1500gbp per month with sub 2 euro rt commish.

also, depending on the traded item payout was say 70% for bund, 90% for bobl kinda thing.
 
This is what I heard about how the monthly fees are calculated at these places. TT access to all exchanges is worth 1250 a month and cqg is worth 600 a month, so they make about 500 bucks off you after paying for your 4-4 space on the floor.

I think what's more important than the data fees are that you should be trading at near cost for commissions.
 
Quote from okwon:

This is what I heard about how the monthly fees are calculated at these places. TT access to all exchanges is worth 1250 a month and cqg is worth 600 a month, so they make about 500 bucks off you after paying for your 4-4 space on the floor.

I think what's more important than the data fees are that you should be trading at near cost for commissions.
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OK, that makes a little more sense now. I think exchange members pay something like 50cents each way. So, 2 RT is not bad. Much better than most futures broker out there.
 
Well, you're probably also getting a Cantor and Brokertec cash screen feed, CBOT T-Note and CME S&P Pit S&P sqwauk box services, Bloomberg news feed, T-1 lines, and dedicated servers for orders and executions as well as a backup. Most have battery back-up and some guys like me have big-ass generators parked on the roof. These bigger houses also have full-time IT guys on the payroll, and smaller ones like mine have IT guys on retainer. You guys don't realize that Eurex, CBOT, LIFFE, and CME all have monthly line charges as well. And don't forget the membership seat leases for the CME and the CBOT. Yeah, $2500 to 3000 per month is about right.

This isn't daytrading stocks. That's alot cheaper to do.
 
Thanks so much for your input guys. That firm only trades the european markets, only a few traders have access to CBOT and CME. They have a few Bloomberg machines and it looked like each traders had at least 2 monitors. You are welcome to PM me if you want more info.
 
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