What a legit futures prop firm might look like | Traders Hideout


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What a legit futures prop firm might look like

  #9 (permalink)

Atlanta
 
 
Posts: 87 since Jan 2017
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tpredictor View Post
That model already exists to some degree via Collective2 or Striker. The problem, at least with, C2 is that you can't bill per contract so from the system providers point of view then it makes it difficult to work out.

The other way to view a 50/50 split is that if a firm is truly offering an advantage and taking the risk then it's a fair split. Remember, the split isn't what's important it's the capital they give you. I'd rather trade with a 50/50 split with a larger amount of capital and no risk then trading with a higher split and taking the risk. Looked at another way, if a firm can't earn a 50% of my profits then they're probably not offering enough value and/or your interests may not be perfectly aligned. That would encourage the firm to make money other ways.

How would you compare Mes to TST and the value each one gives the trader. The splits are different and from MES's language they are directly trying to be a more streamlined TST or at least present themselves that way.

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