I've received a large pose out of emails from traders interested inwards joining a proprietary trading firm. Many of these correspondents seem to lack agreement of prop firms too what they convey to offer. This leaves them opened upward to pie-in-the-sky promises from less than reputable firms. The links below should help traders inwards their hollo for for a trading firm. Below are 5 pitfalls that yous desire to brand certain yous avoid:
1) Firms that promote high frequency trading too that brand a pregnant component of their coin from the commissions they assess their ain traders. Make certain that the prop theatre makes coin when yous are successful, non merely when yous trade;
2) Firms that accuse high fees for grooming too and therefore offering generic educational programs on technical patterns, how to role software, etc.--material that is readily available inwards the populace domain. Make certain that the grooming is noun too straight applicable to the trading yous desire to learn;
3) Firms that accuse deposit fees or other downwardly payments for joining. I convey heard of several firms doing this; none of the reputable firms I endure amongst would consider it.
4) Firms that accuse coin for getting inwards the door (either through high grooming tuition fees or downwardly payments) too and therefore strictly boundary your access to upper-case alphabetic quality too concur yous to ridiculously small-scale daily loss limits. You never convey the run a hazard to brand existent money, too 1 time yous lose one-half of the tuition/downpayment fee, you're shown the door. Total scam.
5) Firms that convey yous pose upward a part of upper-case alphabetic quality inwards instance of losses. This is non a prop firm. There are "arcades" inwards which yous tin merchandise your ain upper-case alphabetic quality too top away along the vast bulk of your profits. Beware firms that uncovering ways to concur onto your cash (by non paying yous a pregnant component of your profits, for instance, at the halt of a pay period), therefore that you're at risk, non them.
There's no substitute for interviewing at a firm, talking amongst their traders, too finding out who is making serious coin at that topographic point too who is satisfied or dissatisfied. If a theatre restricts your might to perform due diligence, run--don't walk--in the contrary direction. Given unemployment, the ease of trading online, too recent marketplace volatility, prop firms are springing upward similar weeds, making alluring promises to would-be traders. Be careful.
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