Arcade Desk Fees

benjamin

Newbie
4 0
Hi everyone,could someone please explain how soon after starting at an arcade do they start charging desk fees if you put down your own money as I know the grads don't have to pay until they start making profits.If the requirement for the arcade is a 5k sit down do they expect you to cover your desk fee from this amount straight from the off which seems impossible or is it up to you to also have money to cover first eg 6 months of desk fees while you are learning.However surley they do not expect someone who only has 5k trading capital to have an additional 18k to for there desk costs for a year which I believe is how long it takes to become profitable.I have heard that some provide a loan service where you pay back what you owe when you start making money.Would appreciate it very much if someone could get back to me on this.
 

TWI

Senior member
2,536 254
Depends on the arcade. Some do but I would avoid those.
Even in best case I know , grads do not "pay until they start making profits", they pay when they start to trade in the real market. That does not mean they are making profits.
I would be careful starting with 5k capital, you really do want to consider a 6month survival of all living costs and desk in worst case, if going self funded. Do not take a loan, you may be crap and you stand to lose even more that way.
 

TWI

Senior member
2,536 254
I would try to get time on a trainer for free. If they refuse, go to another arcade.
 

minx

Well-known member
328 10
To be honest if you dont have any experience then I cant see any advantage of putting ANY of your own money down. Let them pay, train and educate you, if it works out then you'll earn a good living anyway and you're in quite a good bargaining position, if your crap then you've gained insight to that world for free (with a bit of heartache and stress) and you can move on to other things with your £5k still in your pocket. Personally I think its a no-brainer :rolleyes:
 

stevet

Established member
917 5
you could blow 5K in a few trades and there is no incentive for them to stop you if its your money!

get their teachng and their bucks and give it a year and you should be on the way to spending 5K on a good lunch
 

TWI

Senior member
2,536 254
I totally disagree with you.
If you are going to do this, then you better be of a mind to succeed. If you are not, then you are wasting your time and the time of whoever sponsors you.
The ONLY reason not to be self funded is if you cannot afford 20k+ in margin and you cannot support yourself for at a minimum 6-9months without salary.
Why do you think there are sponsorship deals? It is because the business makes money out of you, more money than if you are self funded.
Problem is that if you are funded you are also tied into a contract, so when you start to make you will be giving away a large portion of your profits for much too long that could otherwise go into your own pocket.
 

zeeuk

Member
88 0
I wish I knew about these arcade businesses. I just wanted to be a trader, jumped at a fixed term contract and am now paying the price (heavily!).

If you can put some money down and are confident - do it. However, if you are a rank outsider like I was it could be pretty scary and is always tempting to take the easier option. Good luck either way and Read the Contract!!!
 

Robertral

Well-known member
446 4
zeeuk said:
I wish I knew about these arcade businesses. I just wanted to be a trader, jumped at a fixed term contract and am now paying the price (heavily!).

If you can put some money down and are confident - do it. However, if you are a rank outsider like I was it could be pretty scary and is always tempting to take the easier option. Good luck either way and Read the Contract!!!

Most of these scam shops lock you in a year year contrac..there is a get out, but it will cost you....
 

minx

Well-known member
328 10
Robertral said:
Most of these scam shops lock you in a year year contrac..there is a get out, but it will cost you....

I think you're being a little harsh, they train you and put their capital at your disposal to learn and make money with. Probably about 80% of trainees fail. You dont berate Marks&Spencers because they're making a profit on your ready-meal do you? They are in it to make money, same as everyone else and I think its a great way to learn what to do and how to do it whilst risking nothing except a year of your time. It worked for me and I'm grateful, obviously your deal/split will change over time and you can go client if you want, it will be up to you to negotiate this when the time is right but until then be thankful you've been given a chance, and make the most of it :!:
 

zeeuk

Member
88 0
who are you trading with Minx - u appear to have a much better deal than me. A reasonable amount of money being made from you is expected - outright exploitation on the other hand is not!
 
 
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