I would ask a friend. That's best.
Firms that want deposits or training fees are usually some form of shit. It might also be a sign that their risk management sux. They might be using your money to control some or all of their risk.
I get annoyed when they ask for money. They seem like beggars to me. It's also an insult b/c I don't lose much money and they still want money. Look, if I lose money, I'll write you a check.
The lockup sux too. If you want to leave, you can't get your money back for a year. Annoying.
What I would do is find out how long the firm has been in existence. Good firms have been around for at least ten years and are established.
Go to the firm and talk to management. Look at the traders. Look at the office.
If you see mook mofos, thugs, degenerates, people dressed like homeless people, and so on and if you hear them speaking busted English or talking like criminals, well, you will probably get f*cked soon or later if you join the firm.
Clean office, better firm. Look at their bathroom. Clogged toilet equal shitty firm. No pun intended. Some of these traders don't know how to wipe their a$$ and flush toilets. Not a joke.
In one firm, the compliance insisted that traders shower daily. No joke again.
Payout. This is really important. Ask how often you get paid. Ask about ALL fees including commission. Prop firms seem secretive about this. Get this in writing. Bi-weekly paid out is good. Monthly is bad. Bi-monthly? Tell them to go f*ck themselves. Who gets paid bi-monthly. Fishy stuff. Pay out on demand is best.
I would keep the least amount of money at the firm possible and withdraw money as often as you could.
What's your reason for joining a prop shop?
At Worldco, a trader next to me would joke that prop shops are chop shops.
I gave you some brutal truths that you probably won't find in the prop shop ads or hear from the prop shop guys.
It's also nice if the prop shop orders lunch. Convenient. Breakfast is good, too. Better prop shops gave me free food.
Also, try to see the profit and loss of the traders when you visit them. They should be able to pull it up on the computer screen. If the firm is good, they should not have to hide this. In fact, good firms with good traders would show it off to you. I noticed this. It might give some indication of the type of traders they have.
