Futex- very serious doubts

[Sheen]

I've been invited to the first interview with Futex. However, I have some serious doubts after what I've read in this forum. They pay only £500 base salary for the first three months and after that it is only the profit share. Moreover, it might be impossible to make significant profits with a trading size of 2-3 lots. The other thing is the need to spend over 12 hours a day in the office as if it was a simple way to bigger profits.
Is it worth going to the interview and working for Futex? In my case it would make sense, only if the net salary was at least £60k. Is it possible to make that kind of money with Futex?

 

[pboyles]

You're not going to make substantial profits on 2 or 3 contacts but won't they quickly increase your clip size if you are profitable? If you're already making 60k you need to think about whether it's worth the risk. I mean a year of breaking even (which is far from worst case scenario) is actually costing you 60k in lost wages.

 

[mb325]

I've been invited to the first interview with Futex. However, I have some serious doubts after what I've read in this forum. They pay only £500 base salary for the first three months and after that it is only the profit share. Moreover, it might be impossible to make significant profits with a trading size of 2-3 lots. The other thing is the need to spend over 12 hours a day in the office as if it was a simple way to bigger profits.
Is it worth going to the interview and working for Futex? In my case it would make sense, only if the net salary was at least £60k. Is it possible to make that kind of money with Futex?

If you want to go prop you have to accept that unless you have a proven track record and therefore go through the training scheme you are not going to get paid 'well', if at all. Futex is one of the few UK firms which actually offers a basic salary; I don't actually know of any which pay more than the £500/month.

I'm not aware of any prop firms which continue to pay a 'basic' salary after the training period. As you are effectively self-employed they are all profit share. If you are profitable then obviously they will move you up to more than 2-3 contracts...

Your problem isn't that you're not sure about Futex, your problem is that you don't understand the prop model. I suggest spending a few hours on google.

 

[Sheen]

So what is the prop model? From what I know, the trader trades company's money and they split the profit between them.
Do you have to be self-employed or can you transfer your share of profits to an offshore company, for instance?

 

[pboyles]

So what is the prop model? From what I know, the trader trades company's money and they split the profit between them.
Do you have to be self-employed or can you transfer your share of profits to an offshore company, for instance?

I think he means that there is no salary, only a profit share and if you don't make a profit then you get a share of nothing. There's no way on earth you could know what you are going to earn in advance.

 

[Sheen]

The main point are taxes - if you have to pay tax at a 40% rate with. let's say, 60% profit split, it means that you only get 0.6x(1-0.4)=0.36 of what you've made from trading. Moreover, you have to pay desk fee of £2200. The numbers speak for themselves.

 

[pboyles]

The main point are taxes - if you have to pay tax at a 40% rate with. let's say, 60% profit split, it means that you only get 0.6x(1-0.4)=0.36 of what you've made from trading. Moreover, you have to pay desk fee of £2200. The numbers speak for themselves.

So to make your minimum 60k net you need to make about 125k after the profit split.

 

[arabianights]

So what is the prop model? From what I know, the trader trades company's money and they split the profit between them.
Do you have to be self-employed or can you transfer your share of profits to an offshore company, for instance?

You can do both, I'm kinda confused about your question... there's nothing to stop you being self employed in your offshore company and trading on behalf of said company for a prop firm.

There are various interesting schemes offered by different firms (nonwithstanding what your accountant will come up with). Two I'm aware of are of using a spread betting wrapper, or selling your company to the prop firm for a loss and starting a new one (I'm kinda confused about the latter but it made sense when it was explained to me!).

 

[arabianights]

So to make you minimum 60k net you need to make about 125k after the profit split.

I am not sure about Futex but the industry standard is to remove the desk fees before the profit split.

 

[Sheen]

I am not sure about Futex but the industry standard is to remove the desk fees before the profit split.

Exactly. So I would need to make 166k total profit to get 60k net out of it. Very unlikely that it will happen in the first year or even two.

 

[arabianights]

don't follow the maths

edit: whoops, noticed the 60% split. Yeah, probably. Well firstly, if you did decently after a good training by futex (and here I am going to say no comment for a couple of reasons [you can pm me for a hint... I have 200 PMs to go through though so keep it short if you actually want a reply ], although note I am nothing to do with and never have been anything to do with futex) then 166k should be expected in 2nd year of profitable trading. Secondly, presumably the split would improve to 80 or 90% after a bit of time...

 

[rosehound]

Most locals would expect to spend a lot of time in front of a screen, kind of part of the deal. also, if you want to trade then do it - if you don't don't. what are the alternatives? how do they stack up? why should you be paid a salary for generating no profits? if you have gone down the futex route you must have thought about this stuff in advance right?

 

[controlz]

I've been invited to the first interview with Futex. However, I have some serious doubts after what I've read in this forum. They pay only £500 base salary for the first three months and after that it is only the profit share. Moreover, it might be impossible to make significant profits with a trading size of 2-3 lots. The other thing is the need to spend over 12 hours a day in the office as if it was a simple way to bigger profits.
Is it worth going to the interview and working for Futex? In my case it would make sense, only if the net salary was at least £60k. Is it possible to make that kind of money with Futex?

If you're not prepared to spend 12+ hours a day in an office, 5 days a week without any salary or form of income for AT LEAST a year, then i'm afraid this job isn't for you. If you want it enough, you'll be more than happy with that!

Best of luck

 

[anley]

If you're not prepared to spend 12+ hours a day in an office, 5 days a week without any salary or form of income for AT LEAST a year, then i'm afraid this job isn't for you. If you want it enough, you'll be more than happy with that!

Best of luck

Too true, the OP seems to want everything before he starts, big split, big salary, no tax, just a few hours a day etc.

 

[Nate88]

The more money you make the less percentage they receive, yes you start on 2-3 lots but the more profitable you become or the more consistent you become in your trading the more lots you will receive.

So if your profitable, and they give you lets say for argument sake 200 lots making a 166k in a year is not difficult. Also once you earn over 100k at futex they reduce your profit share to 90% - 10%.

But if you want to trade you have three options 1) trade for a bank, 2) work for a prop firm, 3) trade from home.

So if you wanted trade from home become consistent then go to a prop firm to obtain a larger size to trade with.

Or just start at futex if you get offered the job, but you still need to come up with your own strategy , they will not get there star trader, to teach you his system, they will simply show you the ropes of trading, and from there your on your own.

 

[controlz]

The more money you make the less percentage they receive, yes you start on 2-3 lots but the more profitable you become or the more consistent you become in your trading the more lots you will receive.

You'd be starting with a 1-2 lot.:clap: