Split or no split

[combotrader]

Hi Guys

I am joining a prop firm with my own capital. I have narrowed it down to 2. One is offering me a free course to join with their new grads and then a 2 year mentorship. I trade my own money after the course so I have more say but they still mentor me. But they take a profit split. I also pay desk fees - reduced at first , then normal rates.

The other one does not want a split. I take 100% risk and the same in profits. I still pay desk fees, reduced while I am on the sim, then normal rates when i trade for real.

My question is - the last one has no real incentive to make me a better trader. At least with the 1st one - the more I make, the more they make as the result of the split ( not counting desk fees). I dont know which one to go for. The non split one is a directional shop - which is my type. The split one is a spread house but I can do directional as well.

Does anyone have any advice ?
Thanks
CT.

 

[Masquerade]

Why would you go on a sim trading your own money? Why would you give someone half your profits out of your own money? I'd take none of them if it was me.

 

[brendansvest]

On the split deal, is the prop firm offering better terms, lower round trip costs, capital for leverage etc?

 

[combotrader]

Masq -I want to go prop cos I cannot trade from home - too many distractions

Brendanvest - Yes, the split shop is offering 4:1 intraday leverage, non split 2:1 to start with - but wil increase as I am more profitable. Comms on bund/bobl is the same.

 

[Masquerade]

I can understand why you want to go prop. But either they back you and take a split or you put up your own money and pay desk fee/RT's and take 100% profits. There's no way you should put up your own money, pay the desk fee and then give them half your profits too. That's an awful deal.

 

[Paulie_5]

Personally, I'd go with the prop firm that has the best reputation.

Bear in mind that just because you are going to a prop firm doesn't mean they will make you a profitable trader. (unless you already are of course...)

A split of profits to a prop firm that has taught you how to trade profitably is better than taking 100% of nothing ....

Can you say who the two firms are ?

 

[combotrader]

Thanks guys.

Yes I am profitable trading from home.

The split at Schneider is 70/30 ( in favor of trader ie me) before 50k account size and 90/10 if 50K+
At Futex they actually charge for their course !! That is BS according to me.

I dont need the course. the benefit at STA is the lower desk fees for a few months after the 4 week course which if I do I get the lower desk fees
At Futex - its 1k to trade on the sim if you`re self backed and thereafter normal fees.
Futex is directional so more suited to my style.
Ta
Combo

 

[brendansvest]

If you are putting up your own money there is no way you should pay a split. If it was my own dough I would ask for three months fee free. On a split I would look for 80/20 and a month fee free.

Personally I would look for a backed deal on a 70/30, 80/20 split and keep my hard earned in my pocket.