Profit Splits at day trading Firms

[CoRoLLaRY]

Hi Everyone

I am trying to evaluate the profit split % offered to me in comparison to other firms.

I have searched around the forums, and have found a few msgs which contain such info, but not enough to get a good feel for what is acceptable.

They are offering me a 25% split of profits to start with (trading on the firms money, no salary, but a very small guaranteed draw on future profits), until such a time as I have made 100 000 pounds profit, after which they will review the split. No information as to how they will review the split.

This seems pretty low compared to the other figures i was seeing, such as 60%. But I am also suspect that these companies would give a complete novice 60% profit split when trading on the firms money? It seems way to high to me.

Could someone offer some advice? Other than this profit split, I have a good impression of the company, the effort they put into training you etc

Thanks a million,

 

[Parky]

Hi Everyone

I am trying to evaluate the profit split % offered to me in comparison to other firms.

I have searched around the forums, and have found a few msgs which contain such info, but not enough to get a good feel for what is acceptable.

They are offering me a 25% split of profits to start with (trading on the firms money, no salary, but a very small guaranteed draw on future profits), until such a time as I have made 100 000 pounds profit, after which they will review the split. No information as to how they will review the split.

This seems pretty low compared to the other figures i was seeing, such as 60%. But I am also suspect that these companies would give a complete novice 60% profit split when trading on the firms money? It seems way to high to me.

Could someone offer some advice? Other than this profit split, I have a good impression of the company, the effort they put into training you etc

Thanks a million,

The rule of thumb is that deals are based on experience and track record and volumes but these are the sorts of deals on offer based on the company providing 100% of the trading capital and risk:-
Trader percentage quoted first.
50/50 offered to traders comming through trainee trader programs and usually associated with high commission rates as well.
60/40 Usually offered to traders with bad trading records and those who have been through a 50/50 deal and are showing good promise. usually associated with slightly better commission rates.
65/35 Mid to low volume traders with a reasonable track record.
70/30 Experienced traders, medium to high volumes.
75/25 & 80/20 Good traders &/or high volume traders with good records.

Be warned that companies offering 90/10 deals are disasters waiting to happen. Any trader that could possibly justify this percentage should be self financing and the only reason they would want to give away a percentage is to have a "get out of jail free card" i.e. they have a record of dropping large amounts of money and don't want to take the risk. Why would a Prop house offer such a deal? They are desperate.

 

[fiftyfifty]

Firms in Dublin

I know one prop firm in Dublin (Saxon) offers 40% possibly 50% split on entry as a trainee, this rises to 70% when you have made 200k in gross trading profit i.e. after futures costs but before profit share and desk fees so when you've made 100k yourself basically. They have a 80% split as well but not sure when that kicks in. They've an office in London as well.

Have heard of some strange deals where there's a certain profit share up to a set amount and then higher percentages at different increments after. You're profit being reset every year but don't see how this would work.

Some places do offer a small salary that can be very helpful starting out.