I was looking into a joining a trading arcade but need advice on whether I should.
I am a recent college graduate and have really enjoyed trading through my own personal account for the past two years. However, due to my limited funds I am unable to fully daytrade (need $25k in my account).
I found a firm that would give me 20-1 leverage (I deposit $5k) that does not charge any desk fees. I would be paying roughly $250 in misc. fees to start, which I was told would not actually go to the firm but to the people running my fingerprints, background check, etc.
They also say they lock in your money for one year, unless you have $25k in your account. This is a drawback for me because I do not have all that much money to have $5k locked away for a full year if I decide not to pursue this job. I'm not sure if I can just throw in $25k real quick just to withdraw all my money, I need to clarify this with the manager.
They charge $0.80 for every 100 shares you trade. While this appears to be a low rate since I'm just starting, I feel that my commission fees would increase substantially as time goes on and I begin to trade a lot more shares. In the demo session I attended, I was trading between 100-300 shares, which was not much in regards to commission.
They also cap your loses for each day so that I cannot lose more than say $250 in a single day. This limiting of loses may also hinder my performance although I do see that they are just trying to minimize their risk as well. I am pretty sure they raise your cap over time, but they were not specific as to when they would.
Are these fees and restrictions normal?
All-in-all, while it appears I may be able to make some small amount of money in the short term, it seems it would be very difficult to make enough to actually live off of. Now I know this is a risky career path that involves a lot of time and commitment on my end, which I am more than willing to put in. I just don't want to start off on the wrong foot.
Thanks for the advice.
I am a recent college graduate and have really enjoyed trading through my own personal account for the past two years. However, due to my limited funds I am unable to fully daytrade (need $25k in my account).
I found a firm that would give me 20-1 leverage (I deposit $5k) that does not charge any desk fees. I would be paying roughly $250 in misc. fees to start, which I was told would not actually go to the firm but to the people running my fingerprints, background check, etc.
They also say they lock in your money for one year, unless you have $25k in your account. This is a drawback for me because I do not have all that much money to have $5k locked away for a full year if I decide not to pursue this job. I'm not sure if I can just throw in $25k real quick just to withdraw all my money, I need to clarify this with the manager.
They charge $0.80 for every 100 shares you trade. While this appears to be a low rate since I'm just starting, I feel that my commission fees would increase substantially as time goes on and I begin to trade a lot more shares. In the demo session I attended, I was trading between 100-300 shares, which was not much in regards to commission.
They also cap your loses for each day so that I cannot lose more than say $250 in a single day. This limiting of loses may also hinder my performance although I do see that they are just trying to minimize their risk as well. I am pretty sure they raise your cap over time, but they were not specific as to when they would.
Are these fees and restrictions normal?
All-in-all, while it appears I may be able to make some small amount of money in the short term, it seems it would be very difficult to make enough to actually live off of. Now I know this is a risky career path that involves a lot of time and commitment on my end, which I am more than willing to put in. I just don't want to start off on the wrong foot.
Thanks for the advice.
Last edited:
