5 Things Your Current Prop Trading Firm Doesn’t Want You to Know

How trustworthy is your prop trading firm? You may want to ask yourself if your current firm is trying to hide any of the following things from

you. If they are, consider looking for a new firm.

1 – You Can Get Rebates Through ECNs. Electronic communication networks

(ECNs) facilitate the trading of financial products outside of the exchange. It’s possible to

get trader rebates up to $0.003 per share by using an ECN, but

some prop firms keep this a secret to claim the rebates for

themselves.

2 – You Should Refrain from Overtrading. Some

investment firms will do anything to get you to trade

more. Why? Because the more you trade, the more

money they make. Overtrading is a big problem among day traders and it’s

easier if you don’t have huge costs to overcome along the way. Remember, overtrading

leads to bankruptcy.

3 – You Can Negotiate Better Rates. Some investment firms are all about maximizing profits and if they already have a large user base, they can get away with charging more

than their competitors. Keep in mind that investment firms rarely advertise the ability to negotiate rates down, but it is possible, especially if you trade in large volume or

frequency.

4 – You Can Request Free Trials. A trial is crucial in order to help you build your confidence with the trading

platform. If the firm you are interested in does not offer a trial, ask for one anyway. Many prop firms offer free trials in order to hook you in and then sell to you at a later date. Most trials last only a few weeks and some prop firms don’t provide a trial at all.

5 – Your Trade Reports Are Crucial. Many prop firms

discourage the use of trade reports and

portfolio reviews because the technology can be

expensive. A good prop firm will realize that these techniques are crucial for evaluating performance and will make sure their

clients have these powerful tools.

Unfortunately, there are a lot of unscrupulous

investment firms out there. The good news is that there are plenty of alternatives.

Want to learn more about prop trading firms? Contact us today to

speak with a friendly Nonko representative.

www.nonkotrading.com