Why would a prop firm steal your deposit?

[Hydroblunt]

Quote from giggollo:

Viewing it in a Darwinian way, why would you cut off the commissions income stream to steal the deposit? It's a bit like slaughtering the hen that's laying you all those golden eggs, why would you do it?

What's so hard to understand?

They do it when you leave, hence the commissions stream is severed anyway. There is a prop firm that is well known for doing this, once you tell them you are leaving, you can forget all the money you have in your account. Their name is a synonym to the word "embrace".

Why do they do it? Because NYC equity prop world is one of the shadiest business environments out there. Because daytraders have no lobbying power & no rights; they are viewed as numbers only. Because the turnover is so high that the reputations of the firms and people stay memorable in a fraction of the population of the industry at any given moment. Because there is always some college kid and/or ex corporate guy ready to jump into a sucker agreement without doing research. Because these firms are run by sleazebags who can only do one thing when times get tougher — steal & rip-off. And finally, because it is Wall Street mentality after all.

RM and eagle, some great posts.

 

[glenjohnson]

Take $5,000.00 and times that by 2000 prop traders. The resulting number will tell you why.

 

[JB3]

Quote from glenjohnson:

Take $5,000.00 and times that by 2000 prop traders. The resulting number will tell you why.

What he said.

 

[Don Bright]

Trading is a business, and all traders should treat it as such. Our traders may take money twice a week if they choose to, Tues and Thurs. The money is deposited directly into their checking account. Why would anyone deal with something different? If you just an "employee" then that's a different story, you get a paycheck weekly or monthly.

All the best,

Don

 

[Hydroblunt]

Quote from Don Bright:

Trading is a business, and all traders should treat it as such. Our traders may take money twice a week if they choose to, Tues and Thurs. The money is deposited directly into their checking account. Why would anyone deal with something different? If you just an "employee" then that's a different story, you get a paycheck weekly or monthly.

All the best,

Don

Took you long enough.

I think you're slipping lately, I almost thought Bright went out of business.

 

[Don Bright]

Quote from Hydroblunt:

Took you long enough.

I think you're slipping lately, I almost thought Bright went out of business.

Just getting older(er), LOL.

Don

 

[Joab]

Quote from Rearden Metal:



1) NEVER trust anyone who calls people 'buddy' or 'my friend', and never do business with them.

Rearden, Buddy, Ole Pal of mine ....

Don't you think this is a bit of a massive generalization?




OP,


The main reason prop shops keep peoples deposits is because 90% of it's traders leave and are not replaced fast enough.

 

[Rearden Metal]

Quote from Joab:



Rearden, Buddy, Ole Pal of mine ....

Don't you think this is a bit of a massive generalization?

Actually, I've been repeatedly stunned by the incredible effectiveness of this simple little profiling trick. Time and time again, I've been seriously amazed at how seemingly decent guys who <i>just happen</i> to address others as 'buddy' or 'friend', always turn out to be lying sleazebags.

You'd think I'm over-simplifying the matter... but have <b>you</b> ever met a truly trustworthy guy who habitually uses the 'bullshitter key word'?
I know I haven't.

 

[ElectricSavant]

How about "trust me"

or..

"I want to help you"....

Quote from Rearden Metal:

Actually, I've been repeatedly stunned by the incredible effectiveness of this simple little profiling trick. Time and time again, I've been seriously amazed at how seemingly decent guys who <i>just happen</i> to address others as 'buddy' or 'friend', always turn out to be lying sleazebags.

You'd think I'm over-simplifying the matter... but have <b>you</b> ever met a truly trustworthy guy who habitually uses the 'bullshitter key word'?
I know I haven't.

 

[LT701]

Quote from eagle488:

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.

so sad and so true