Why would a prop firm steal your deposit?

artis74 · Dec 10, 2006

assume the worst of people in the prop world and if you discover they arent trying to screw you it will be a plesant suprise.

HoundDogOne · Dec 10, 2006

Quote from Guildenstern:

Don't forget the electronics rebate checks that never come.

Good point.

Only about 40% of electronics "rebates" are actually paid...
You can verify that number on the Net.

On principle...
I NEVER buy any product advertising a "rebate"...
Because both the manufacturer and the store are trying to DEFRAUD me...
And the salesman knows it... but will lie to your face till the cows come home.

HoundDogOne · Dec 10, 2006

Quote from jem:

to supplement RMs response I would like to add never trust someone who says trust me.

First first day of law school my first professor said he had 20 years experience doing contracts in Chicago.

he said when someone says "trust me" translate it as fuck you.

Some of the best advice I ever had as a lawyer.

This is good advice.

Trustworthy people never, ever say stuff like "trust me" or "I'm honest"...
Because they KNOW that trust can ONLY be earned.

So when you hear "my friend" or "trust me" from a stranger...
There is a 100% chance that you are dealing with a dishonest person.

ElectricSavant · Dec 10, 2006

I have received every rebate I have ever applied for...except for onrebate.com. Stay away from companies that contract with them.

Generally if you jump through the hoops and submit...you will get it...its just that most people fail step one.

Quote from HoundDogOne:

Good point.

Only about 40% of electronics "rebates" are actually paid...
You can verify that number on the Net.

On principle...
I NEVER buy any product advertising a "rebate"...
Because both the manufacturer and the store are trying to DEFRAUD me...
And the salesman knows it... but will lie to your face till the cows come home.

HoundDogOne · Dec 10, 2006

Quote from giggollo:

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.

It's important to view the business world in a Darwinian way...
And understand that laws and regulations mean next to nothing...
Or else you will just get taken to the cleaners.

The only thing that matters is... ** what you can get away with **.

So what is the solution?

You have to present yourself as someone not worth f*cking with...
Because you will fight... and can afford to fight.

When you deal from strength...
Business people will just do business with you...
And then go f*ck the next guy.

HoundDogOne · Dec 10, 2006

Quote from ElectricSavant:

I have received every rebate I have ever applied for...except for onrebate.com. Stay away from companies that contract with them.

Generally if you jump through the hoops and submit...you will get it...its just that most people fail step one.

Your personal experiences...
Do not in any way change the fact that only 40% of rebates are paid...
And that it is a calculated attempt to trick the customer.

You are willing to jump through hoops for a small amount of money.
In contrast, my time is much too valuable in dollars per hour terms.

ElectricSavant · Dec 10, 2006

It takes 5 minutes to submit correctly...but I am not Bill Gates where it costs him money to stop and bend over to pick up a "C" note from the sidewalk.

Quote from HoundDogOne:

Your personal experiences...
Do not in any way change the fact that only 40% of rebates are paid...
And that it is a calculated attempt to trick the customer.

You are willing to jump through hoops for a small amount of money.
In contrast, my time is much too valuable in dollars per hour terms.

giggollo · Dec 10, 2006

Quote from HoundDogOne:

It's important to view the business world in a Darwinian way...

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?

nonam · Dec 10, 2006

I am with houndog,most rebate schemes are fraud.Otherwise why wouldnt they all do it like costco,rebate online?
And I am wondering if broker confiscation of deposits is similar fraud.You didnt cross all the T's and dot all the I's ,so you lose?

GTS · Dec 10, 2006

Quote from HoundDogOne:

Your personal experiences...
Do not in any way change the fact that only 40% of rebates are paid...

Interesting but misleading statistic. What % of purchases that have rebates available never have the rebates submitted? If only 45% of rebates ever get submitted then a 40% pay out rate isnt too bad.