A number of prop firms are accused of not paying their traders on these boards, and I am wondering...a prop firm will have put millions up to get the buying power for its traders, and those traders are generating commissions for the firm. Assume I put up a typical deposit of $5000 and I am generating $5000 in commissions per month for the firm (assuming that's typical too). Why would a prop firm be tempted to steal my tiny deposit if it's making that much from me while i'm trading PER MONTH, and considering how much it has invested in creating the firm, and how much it stands to lose if its reputation is ruined by just one person not getting paid.
Why would a prop firm steal your deposit?
- Thread starter giggollo
- Start date
I think its because the firms that are accused of stealing the deposits are not the ones putting up the millions, they are sub llc's or just have deals with bigger companies or clearing firms to provide BP for a fee or cut of the profits/commish. I think a lot of these smaller places could even be 1 man shows, and 5k does mean a lot.
This is a lesson I learned many many times in life.
When cash leaves your hand, the chances of you getting it back are slim.
Whenever you rent an apartment, what happens? You put down a deposit to the landlord (who probably has more money then yourself). When the lease is up and its time to jet, even if the apartment was cleaner then when you moved in, 9 times out of 10 the landlord will try to keep your deposit.
Whenever you have a roommate, I would say 75% of the time they will try to rip you off at some point during the tenancy.
When you work an actual job, at some point the employer will try to steal away your time. Make you work beyond your job description and have you work for free.
Well, the list goes on and on. Remember the above valuable lesson.
The only *chance* you have of getting your cash back once it leaves your hand is if you act immediately and aggressively.
Immediately means just that. As soon as possible.
Aggressively means that you get in someone's face until the police arrive or filing a lawsuit that day. If its an employer, file a labor claim with the state that day.
Even then, its only by chance that you will receive your cash back.
This lesson applies to ALL people, everyone. If you give cash to your brother, there is a chance it wont get paid back. If you give cash to your best friend, there is a chance it wont get paid back. etc.
Your money should not be handed over to anyone. If you do decide to hand it over, then there is a good chance that you wont be seeing it EVER again.
Even if you signed a contract, the only way it can be enforced is by a court order garnishing wages or confiscating money from a bank account.
When cash leaves your hand, the chances of you getting it back are slim.
Whenever you rent an apartment, what happens? You put down a deposit to the landlord (who probably has more money then yourself). When the lease is up and its time to jet, even if the apartment was cleaner then when you moved in, 9 times out of 10 the landlord will try to keep your deposit.
Whenever you have a roommate, I would say 75% of the time they will try to rip you off at some point during the tenancy.
When you work an actual job, at some point the employer will try to steal away your time. Make you work beyond your job description and have you work for free.
Well, the list goes on and on. Remember the above valuable lesson.
The only *chance* you have of getting your cash back once it leaves your hand is if you act immediately and aggressively.
Immediately means just that. As soon as possible.
Aggressively means that you get in someone's face until the police arrive or filing a lawsuit that day. If its an employer, file a labor claim with the state that day.
Even then, its only by chance that you will receive your cash back.
This lesson applies to ALL people, everyone. If you give cash to your brother, there is a chance it wont get paid back. If you give cash to your best friend, there is a chance it wont get paid back. etc.
Your money should not be handed over to anyone. If you do decide to hand it over, then there is a good chance that you wont be seeing it EVER again.
Even if you signed a contract, the only way it can be enforced is by a court order garnishing wages or confiscating money from a bank account.
You know what? I didn't realize it at first, but Eagle is a pretty astute guy.
Don't forget the electronics rebate checks that never come.
There are many strategies and much philosophy that I post up on this board. I am not entirely certain of some of these strategies at times. Sometimes they come true, other times they dont.
However, as to my previous post on this thread, I am 100% certain. If you have a fear of losing money, then dont loan it out.
Once the cash leaves your hand, consider it gone.
In life there will be the guys and the gals who want money and they will appear in many different forms. In this forum, they appear to be the prop trading firm.
Dont ask or wonder why people are not honest and have the desire to rip you off. Just know that 9 out of 10 people do it and many will figure out a way to keep your cash even if you utilize extreme measures.
I will now go into a few good examples. I had a roommate a long long time ago who ripped me off out of the deposit. I was so pissed off that I yelled at him for an hour, got in his face, threatened legal action and even told him in very threatening language that I would not leave the apartment without my deposit.
In the end he didnt give it back and I ended up stealing the leather couches. He did call me a few times wondering if I was going to pay for the couches, haha.
Another roommate I had suddenly stopped paying the rent. He moved out oweing money. I wrote certified letters to him, came over to his new place on a daily basis approaching him face to face, etc. Promises were made time after time and no money was ever received. I finally sent him a Summons and Complaint from the small claims court.
I never collected the rent and I was going to throw yellow road paint on his car. I went to his car and realized that he had already smashed it up. I went to his landlord and warned them about his non-rent paying ways. A week later, I saw an eviction notice on his door. Looks like the landlord was having problems too.
Yet another roommate had tried to get away without paying. Several phone calls and letters later I decided to blackmail him. I sent him a letter that either he pay or that I go to his girlfriend and explain to her about the women he slept with. I got a check a few days later with a letter telling me to go to hell.
I've had a few employers in my time who have ripped me off out of commissions on the way out. I had to go to the state labor board a few seperate times. Even when the board ruled in my favor, I didnt see the check until the latest possible time. The process involved some lawyer questioning and belittling me. It was a long drawn out humiliating process.
Your money is yours. Do not trust it with anyone even when there is a verbal agreement and written contract.
However, as to my previous post on this thread, I am 100% certain. If you have a fear of losing money, then dont loan it out.
Once the cash leaves your hand, consider it gone.
In life there will be the guys and the gals who want money and they will appear in many different forms. In this forum, they appear to be the prop trading firm.
Dont ask or wonder why people are not honest and have the desire to rip you off. Just know that 9 out of 10 people do it and many will figure out a way to keep your cash even if you utilize extreme measures.
I will now go into a few good examples. I had a roommate a long long time ago who ripped me off out of the deposit. I was so pissed off that I yelled at him for an hour, got in his face, threatened legal action and even told him in very threatening language that I would not leave the apartment without my deposit.
In the end he didnt give it back and I ended up stealing the leather couches. He did call me a few times wondering if I was going to pay for the couches, haha.
Another roommate I had suddenly stopped paying the rent. He moved out oweing money. I wrote certified letters to him, came over to his new place on a daily basis approaching him face to face, etc. Promises were made time after time and no money was ever received. I finally sent him a Summons and Complaint from the small claims court.
I never collected the rent and I was going to throw yellow road paint on his car. I went to his car and realized that he had already smashed it up. I went to his landlord and warned them about his non-rent paying ways. A week later, I saw an eviction notice on his door. Looks like the landlord was having problems too.
Yet another roommate had tried to get away without paying. Several phone calls and letters later I decided to blackmail him. I sent him a letter that either he pay or that I go to his girlfriend and explain to her about the women he slept with. I got a check a few days later with a letter telling me to go to hell.
I've had a few employers in my time who have ripped me off out of commissions on the way out. I had to go to the state labor board a few seperate times. Even when the board ruled in my favor, I didnt see the check until the latest possible time. The process involved some lawyer questioning and belittling me. It was a long drawn out humiliating process.
Your money is yours. Do not trust it with anyone even when there is a verbal agreement and written contract.
Remind me to NEVER owe eagle money! 
From the broker evaluation section:
"Bad Service" - Nasdaq5048 May 12, 2006 1:39 PM
Quote & Execution Speed
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The people anwsering the phone doesn't know anything. They will overcharge you and it takes forever to give it back.
Amen and thanks Eagle!
mjh
"Bad Service" - Nasdaq5048 May 12, 2006 1:39 PM
Quote & Execution Speed
Range of Services
Training & Tech Support
Commissions & Fees
Overall Reliability
The people anwsering the phone doesn't know anything. They will overcharge you and it takes forever to give it back.
Amen and thanks Eagle!
mjh