Lvup7 wrote:aliassmith wrote:prochargedmopar wrote:You do know that when you are successfully pulling $8k a month out of the account they are laughing all the way to the Bank.
Very sure they have accounts linked to that demo with MILLIONS in them.
They might as well give you 100% profits as the 30% is like lunch money, if that.
Yes, pretty much all successful people (except maybe Dave Ramsey, LOL) use OPM.
No doubt.
They also pay very LITTLE in taxes. Lots more than you or I but as a %, no way.
Maybe it's like a "reverse oasis" Hahahhaha,
This dudes a nut.
You do know
I am also laughing all the way to the bank. I made money using little of my own.
Basically I just got a McDonald's franchise (or 3) with very little out of pocket. Sure you have to run the business
but they bought the building, the equipment, the food and the advertising. Thats why they get the 30%.
Some McDonald's franchise owners are naturally going to make more than others, but most franchise owners still pull in an estimated yearly profit of roughly $150,000 (via Fox Business).
According to Business Insider, the initial investment is between $1 million and $2.2 million
In the end ( comparing income) I got 3 McDonald franchises for a few grand!
The POWER of OPM baby!
I am loving this back and forth. Its a damn ingenious business model for the prop firms. I am sure we'll see many more immerging in the coming years. Along with lucrative chase flow coming in from profitable traders, they are probably covering part of there operating costs from all the failed challenges. I know someone personally that already failed 3, $697 challenges, now times that by 1 thousands it all adds up.
That being said, from the trader's perspective I would agree with aliassmith. Risking OPM is not the same as risk your own cash. For a second lets not focus on giving up profits, and look at what you have to lose. At the Top tier with a $500k you can lose up to 40k. How would it feel if you lost 40k of your own money risking 3% in a few trades?
The firm also assumes major risk. Just imagine 500 trades loaded heavy on particular currency pair, some black swan event happens in the market which no body could predict. Trader walks away feeling about the blown account , the firm likely go down.
Other points to consider. If you live in the US they regulate everything forex/cfd to the point where there are no options.
The trading conditions are better at the couple of places Ive looked at.
The EURUSD is about a half pip spread +commission.
The GBPJPY is about 1 pip
You don't get that with Oanda
You can trade cfd and crypto (I don't prefer trading crypto)
You can trade 100:1 leverage (I'm usually fine with 10x)
NO FIFO conditions
Hedging is allowed
There are Cons to the firms and they vary
No news trading
No over weekend holding
Limited drawdown (I don't see it as a bad thing)
In the end if it fits your trading style then It could be a good thing. With a few thousand dollars I can replace my account with theirs.