Which Offer Do I Take?

I'm a recent college graduate who just accepted an entry level traders job at Firm A (I'll withhold the firm names) (I'm currently studying for the 56 for them before I start training). Firm A has a $7500 contribution and no guarantee with 70/30 payouts and $10 tickets. I know it's not the ideal landing spot for a new trader, but I liked the training program they had there. The guy running the training seemed to really be very passionate about his traders and tries his best to help them succeed, which appealed to me. He touts a very low turnover ratio among his trainees.

However, Firm B is now looking to interview me. They have no CC and offer a $2000/month guarantee. However, the training is unpaid and there is no guarantee I even get hired at the end of the 4 months (I get evaluated first). I also don't know much about the quality of their training program, though some Glassdoor reviews say it leaves a lot to be desired.

How important is the whole CC/guaranteed salary debate that I should consider switching to firm B if they make me an offer? Thanks.

 

I'm more worried about how they say shops that have capital contributions are bad/higher fail rate. It's also somewhat time sensitive that I probably won't know if Firm B will hire me for January until after I'm supposed to start at Firm A.

 
Best Response
futurectdoc:
Firm B you shouldn't have to put up capital.
Yes. CC means that they aren't going to invest enough training into you to trust you with their money....any losses will come out of the CC, and when that runs dry you're done. Get some training at firm B and then ...maybe... go to the place with the 70/30 split if you're doing really well. The $2,000 / month pay is so you don't starve and panic while starving and will make a huge difference that first month or two while you adjust.

Also....$10 per trade??? You trade on a scottrade account for less.

IMO: Type A trading isn't a job: you're paying them for the privelage of using their platform and it only makes sense if you are good at it so you can pocket the 70/30 split. There is a place like that a few blocks over from me and I interviewed with them for the hell of it...they told me they had low turnover, but the buddy that got me the interview told me that turnover was 70%+ within six months. I don't know if that's standard but....70% ??? Decide for yourself, but this is what I know...

Get busy living
 

No trade experience. Fwiw though the money isn't really an issue as it would be for most recent graduates. I had an old job that I put some money away from. It's not going to hurt me to lose the CC and I have no student debt or anything. Not that, that really means much in the argument of CC firms vs. non-CC firms, but it seems relevant to point out that I'm not going to "starve" without the 2k/month (even if it is nice).

Here's another issue: I'm supposed to be taking the 56 sometime in October and starting with "A" as soon as I pass. The interview with firm B wouldn't be until around then as well. I can't imagine I'd get any decision from them before November. However, as soon as I go in for day 1 at firm A, my CC gets locked in for 1 year (I get it back at the end of it, but obviously I'd rather have it myself). How do I handle this with Firm A? Stall?

 

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