Newbie proprietary firm questions

Hi,

I'm a recent university graduate in business. I have a passion for the stock market. I've recently came across an ad for a job as a trader for a proprietary firm. I've done the interview and it was pretty basic questions about risk aversion, stock market, etc.. We did not go into any specific detail about the firm or my commitment to the firm. The only thing that was said is that I just have to do a 500$ deposit for a two week training and that after that, if they think I have potential, I will start to trade the firm capital. (if not they give me back my 500$). They said I would start only with 100 shares per trade and that the volume will go up as I learn and start making money. They said I would get 50% of the profit until I get my account to 5k. Then the profit split will be 70/30 and if I keep making money I will be able to renegotiate the profit sharing. I have to share the losses as well and to pay a 200$ monthly fee for the desk and the trading platform. As for transaction fees, we did not get into details but they said it was the standard fees structure with no additional fees.

I have now been selected to become a trader for this firm and to start the training program. Do those conditions seem fair? Since I saw on this forum that a lot of proprietary firm share the fund profits with their traders, should I ask for a % of the fund profits? What specific questions should I ask before committing to this firm?

Thank you for your help.

I would be very concerned about why they want a $500 deposit.

I'd put money on the fact that once in they'll try to squeeze you for more cash in order to 'contine and help with your education'.

The $500 is probably a red herring, ie not a lot so as to get you in the door. If they asked for more before you've started then chances are you'd say no. So get you in then start asking........

There is a recent trend for training companies to falsely advertise their courses as jobs. Their selection process amounts to very little as the aim is to collect your training fee rather than turn you into a profitable trader. Have a think about how difficult the selection process was, that should give you a fair indication. Also if you tell us the name of the firm people here will be able to advise you if they are a proper firm or just some fly by night outfit bent on scamming you. Fraud is endemic in this industry, be very careful handing money over to anyone.

The firm is World trade securities in Montreal.

From what I have read on the Internet it was founded by people that used to work at Swift Trades.

As for the 500$, I don't think it is a big enough amount to be a scam. They told me they just did training once a month for a couple of selected candidates. I saw their installation and I don't think it would be a profitable scam to have 500$ from a few people and having to pay the rent and all the computers, etc... When I asked about the 500$, they told me that they want serious candidates, not just curious people who wants a free day trading course. They also told me that it would take between 3 to 6 months before being profitable and that if I wasn't able to make a 500$ deposit, how could I sustain myself for 6 months.

Anyone knows anything about World trade securities

Read this thread from Elitetrader, especially the last post from Tradeindia

http://www.elitetrader.com/vb/showthread.php?threadid=117844&perpage=6&pagenumber=3

As for what I see on elitetrader forum (from people that actually traded there like tradeinadia) it seem like a legit firm that have been open for a few years.

Now what fees should I expect? They told me they charge 200$ per month for the software and i red on elitetrader forum that they charge on average .0002$ / share. Are those fee standard? what other fee should I expect to pay? People on other forums talk about sec, nscc and taft fees. What are all those?

Also, does the profit share that i mentioned in earlier post seems fair knowing I have no experience in trading?

Finally, can you explain me this comment from another forum (for what I understand about trading it seems fair) :

"Max daily stop loss is $40 when you start, then $100 after being profitable 3 days in a row. After that it goes to $200, $400, $600 etc., if your total max loss in the first couple months reaches $1500 you get fired.

They will make you do as much volume as is humanly possible scalping C for rebates, if you don't do at least 300k shares a day after the first couple months they fire you.

Stocks over $100 are pretty much off limit, maybe after a few months you can convince them to trade 100 share lots."

Thank you for your help.

Hello everyone,

I applied for the position of an Equity trader at WTS and have received an invitation to complete an online pre interview quiz.

It would be very helpful if someone who is working at WTS can guide me with what I can expect on this quiz. Can I expect numerical questions on it?

Thanks and Regards,

Might be of some use to you.

Proprietary Trading Interview Questions and Preparation Tips

Hello,
I just received an invitation to sit the pre interview quiz of WTS PROP TRADING.
Could you tell me how was your test ?
Which kind of questions did you have?

thank you!!!

equityt said:

Hello everyone,

I applied for the position of an Equity trader at WTS and have received an invitation to complete an online pre interview quiz.

It would be very helpful if someone who is working at WTS can guide me with what I can expect on this quiz. Can I expect numerical questions on it?

Thanks and Regards,

Click to expand...

Prop trading brokers offer a little extra and it being the ability to sit in the broker's office and be forced to click the mouse button several dozen times per minute.

Kind of like going to the massage parlour. Put your money down get your self "extras" and then bye bye.

Day gambling should be reserved for Vegas or your local pub (if you live in Europe).