Hi all…. I’ve been running my strategy for 4 months now… and have been in profit for each of these 4 months.
From the start it made a small profit, and for the first 3 months I have continued to be in small profit at the end of each month whilst I was tweeking the variables. August has also been in profit, but a much bigger % as the strategy has been smoothed out… fingers crossed things continue.
So… 4 months consecutive profit, I realise it’s still early stages as yet… I was wondering however… if I continue in good profit… will this automatically come to the attention of my Broker.?
Is it the case that Brokers will contact profitable traders so they can invest in your trading financially and want a piece of the pie?
Just wondering where things could go regarding this…?
@dpaterso … I was hoping you might have some insight on this as you usually reply, and have experience of a lot of scenarios?
If it did, it would make me slightly mistrustful of the broker. You see, they always say they don’t trade and they don’t care financially whether clients make a profit or not as they take their profit from the spread and fees, not from clients’ losses. If they start trading, they are automatically taking opposite positions to at least some of their clients and the relationship becomes very murky. If not downright illegal.
This is very unlikely. Brokers already earn money from your trades. It would be really strange if they call you in for trading on their behalf. Even if they do, try to ignore.
I dont know but maybe they will churn money from your account for the trade losses. Maybe!
Thanks @tommor & @Ele_Wood1 … that kind of makes sense… any experience of ‘who’ then might want to take an interest/invest in a profitable trader? …i.e. a very well funded organisation rather than just individuals.
I have seen some companies online specifically with this as a business model… they provide the funds, and the profit is split.
I have my own funds to trade with (£50K), but that’s small in comparison to what financial institutions might have to play with.
It’s hardly unlikely. Granted, in these types of places you’re hardly likely to trip over each other in the mad rush to up the ante, but a small smattering of individuals who frequented a thread on this very board are currently earning their corn from that very scenario, some of them for quite some time.
The brokers concerned who contributed on & off over a 10 year period introduced them to investment capital, most of which is routed through their supply channels.
The individuals would never in a million years have either amassed or attracted that degree of capital or the specific strategy models to complement that exposure. They managed to come out the other end of a well filtered screening gig & all concerned are reaping the benefits.
Broker will not really look into your trading stats. In a certain way it’s not the most important for them. A broker make money with the spread (swap as well). So technically, the more you trade, the more you will make orders and the more the broker will get spread.
The second important think is the size of your trade, bigger lot size, mean bigger spread (in term of cash not on pips cost).
A broker will evaluate your value based on how much you bring to him regarding the previous elements.
One possible things depending of your broker can be:
Participation to event / cocktails with other top clients
Offering better spread if you maintain a certain amount of volume
Your broker is unlikely to reach out to you just because you are trading profitably. They really shouldn’t either.
As far as getting funded. You could do that but you do already have a sizeable amount of capital to trade with and should probably look at trading on your own. As has been pointed out trading accounts are margin accounts so there is no need to keep the full 50,000 in the account better to invest some in some funds that generate a steady 5-10% a year or even just hold it in a high yield savings account. If you have all 50,000 parked at your broker that money is just sitting there and also at risk if your broker goes under or any other number of things that can potentially go wrong.
If you are serious about getting funded at say a prop firm that is a possibility. I went this route at the beginning of my career and it helped me gain access to a few great opportunities as well as have the capital available to go full time. I was able to meet some great people and network which landed me some further opportunities to grow my trading career but ultimately it was too time consuming and stressful like any career and so I took the money I made and began trading for myself again.
If you want to go this route please build a solid year of results atleast. Then do your research when looking for firms there are plenty BS firms. You shouldn’t have to pay to have the opportunity to show them you can trade. From my experience, get a solid track record bring that to the table and get some interviews. If you want to do this properly it is a time consuming, rejection filled road but it can be done.
No; if you are using a transparent broker (regulated) then don’t worry; they have no problem if you earn money; even that’s the way they are also making money!
I also dont think that brokers should contact you if you are making money. Especially if we are speaking about regulated brokers. I am not sure how non-regulated are conducting business. Eventually, this is why you have opened an account on a first place – to make some money. Right?