Worldco LLC

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Hitman:

Thanks of posting some numbers about the typical package that Worldco gives to traders. I know some people feel that this forum isn't for "recruiting" or whatever. But it's good to know what's out there so one can shop and compare. And especially helpful for the new traders to get info.

I'm "new" to this area of proprietary trading, though I have experience on the institutional buy-side and top school graduate(though that doesn't matter as much in trading).

Anyhow, what kind of deals can you put together for someone who is becoming gross positive and net positive daily now. My current arrangement gives a relatively "low" payout that makes it difficult to make a living though I consider my improving track record as a positive development considering I've only been doing this particular type of trading for about 2months.

Here's the breakdown of my current arrangements:
Monthly payout:
40% with sliding scale up

Commission:
half a penny base
+
ECN fees
= total = 3/4 penny with no ticket charges.

No Capital contribution.

I have no problem withthe current commission though the payout seems rather low compare to what you wrote:

Hitman wrote:
"If you have no capital whatsoever, 60-70%, however, in reality, by the time you actually get your first check (assuming you are totally inexperienced it will take at least 3-6 months), it will probably be in the 80's. The "low" payout you start with is more like so the management can reward you with something that will make you feel good about yourself when you accomplish certain feats, like going gross positive, net positive, etc . . . "

So, what can I expect? At least 85% payout? And also, how is your trading platform and support of Nasdaq stocks/commissions? And what kind of shares size do you give good, net positive traders coming in?


:)

Thanks

trader99
 
If you trade Nasdaq, I recommend another firm, simply because we do not self-clear for Nasdaq and you have to put up some serious capital to trade any Nasdaq at all here.

Your payout will be at least a double of what you currently have, but if you start with no capital your commission will be about 1.3 cent a share $3 ticket (daily charge NOT per trade). The ticket charges and higher commission provides an incentive for people to put up SOME capital, as we obviously want people to put something on the line if at all possible.

Regardless of how good you say you are, if you come in with NO capital, you will start with NO MORE THAN 300-500 shares. I mean, come on, if you are top tier, you CAN afford to put up some money, and there is no if and but's about it. If you don't want to put up any money, trade 300-500 for a week, if you are as good as advertised, sky is the limit.

Quoteboy:

Sorry I missed your Christmas questions. There is no monthly fee, if you put up no capital you will start out with 1-2 monitors and of course your own computer. You will have ILX for chart/quote, Belzberg for order entry.

Let's put it this way, we are the second largest trading firm in this country (700 traders, 200-300 behind Schonfeld), we will be there as long as day trading remains a viable profession.
 
Hitman:

Thanks for answering my question! I like the way you handle everything professionally especially questions.

You wrote:"Regardless of how good you say you are, if you come in with NO capital, you will start with NO MORE THAN 300-500 shares. I mean, come on, if you are top tier, you CAN afford to put up some money, and there is no if and but's about it. If you don't want to put up any money, trade 300-500 for a week, if you are as good as advertised, sky is the limit. "

Oh! I think you misunderstood my question. I don't meant to say I'm "that good" or whatever. I'm just saying I'm improving in the positive direction and hope to work on it to improve some more.
300-500 shares would be great since my current limit is lower than that. Currently, I'm trading only 100-200shares and generate anywhere from a few dollars positive to close to $100-200/day on average. My personal high was $400. Though that doesn't sound a lot, it's because I'm trying to net positive by not trading as often. Maybe 4000-12,000 shares/day at most. And I'm sure with bigger shares, just multiply it the net up and it gets interesting fast...


You wrote:"Your payout will be at least a double of what you currently have, but if you start with no capital your commission will be about 1.3 cent a share $3 ticket (daily charge NOT per trade). The ticket charges and higher commission provides an incentive for people to put up SOME capital, as we obviously want people to put something on the line if at all possible. "

Sure, sounds reasonable.


You wrote:"If you trade Nasdaq, I recommend another firm, simply because we do not self-clear for Nasdaq and you have to put up some serious capital to trade any Nasdaq at all here. "

OIC. I guess this totally answers my questions since i like nasdaq. But keep up the postings. It's really interesting


:(

thanks!

trader99
 
Hitman,
One quick question. Sorry if this is a repeat. I read your post about being able to put up money if you have experience. I totally agree. You should have money to put up if you have been trading for a while. Also, you should be willing to "bet" on yourself. If I put up money at Worldco, do I get interest on that money and any other money I leave up? Do I need to leave it there for a year to meet the subloan requirements? WHat percentage of the LLC's capital is owner and what percent trader? Well, maybe it wan't a quick question...sorry
 
>If I put up money at Worldco, do I get interest on that money and any other money I leave up?

Yes.

>Do I need to leave it there for a year to meet the subloan requirements?

No, last time I checked it is 90 days, I need to look it up again.

>What percentage of the LLC's capital is owner and what percent trader?

I don't know the exact split, but I have seen people trading 200K roundtrip on a daily basis with just 30K in their account. In other word, don't even worry about it.

Last but not least, we also reward our traders with stock options, I was given 433 shares for last year's performance, and when we do go public next year hopefully in a slightly more favorable market environment, those shares will be offered at $10 a piece.

Now of course, by the time I can actually cash it in (late 2004), it will either be cash or trash, still, not a bad bonus.
 
NASD Regulation Fines and Censures Worldco, LLC and Former Principal for Day
Trading Margin Violations

WASHINGTON, Jan. 9 /PRNewswire/ -- NASD Regulation, Inc. today announced that it censured and fined Worldco, LLC of New York City $175,000 for violating NASD day trading rules. Additionally, NASD Regulation announced that Worldco's former Chief Financial Officer, Terry T. Maloney, was censured
and fined together with the firm, an additional $15,000 for the violations.

NASD Regulation found that from October 1998 through March 2000, Worldco failed to adequately monitor, calculate and enforce NASD day trading margin requirements for a prime brokerage account of an institutional customer.

Worldco cleared and financed transactions in that customer's account.

NASD Regulation found that Worldco failed to monitor and calculate whether the account, which engaged in extensive day trading, exceeded day trading buying power. As a result, Worldco was not able to determine whether the account had sufficient equity, and whether a margin call needed to be issued.
It was found that Worldco, acting through Maloney, who was responsible for ensuring the firm's compliance with day trading margin rules, violated NASD rules.

In a typical prime brokerage account, an institutional investor will
execute trades with various broker-dealers, and the trades will be aggregated in the prime brokerage account for the purpose of clearance and settlement.

The clearing firm is responsible for ensuring that the prime brokerage account is maintained pursuant to the requirements of Regulation T and applicable Self Regulatory Organization margin rules. NASD rules require, among other things, that a firm ensure that a customer's account maintains sufficient equity, and
in the case of a deficiency, require that the customer provide additional cash or securities to meet any deficiency.

As a part of the settlement with NASD Regulation, Worldco and Maloney neither admitted nor denied NASD Regulation's findings.

Investors can obtain more information about NASD Regulation as well as the disciplinary record of any NASD-registered broker or brokerage firm by calling 800-289-9999, or by sending an e-mail through NASD Regulation's Web Site,
http://www.nasdr.com .
 
Well as I said, it will be either cash or trash, and now I have the actual certificate in my hand, along with the time stamp I think it is a little bit closer to reality than 1998. I mean, it is not like I paid anything for it.

Look, I am not expecting the next CSCO here, if I can get dollars for it, that's really all I ask for. I mean, everything I see about this company looks good, we throw lavish parties and we seem to accept everyone and their uncle to trade for us, could it be a smoke screen? Yes, absolutely, nothing is 100% certain and there is always a risk that we will tap out at some point as it is with any firm, I mean, if ENE/PVN can tap out, so can any company, but if I am a betting man, I would pick Worldco as the company that CAN survive this mess.

Just heard a rumor that Long River LLC tapped out today, my boss told them to get as many refugees as possible if this is confirmed.

I am not sure if we self-clear AMEX (although I do know the commission rate is the same), I hardly ever trade anything there, let's face it, trading QQQ without ISLD is not a good idea to begin with.

Last but not least, we get bad press every now and then, if you dig hard enough you can find some controversial stuff about every company. I consider it free advertisement.
 
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