Stock Trading and Other Things

Will a day trading firm ask you to deposit your own money???

I saw a posting from a Day Trading firm that is looking to train new people to join their team. You are put through 2 weeks of training and assuming you pass the training, you are then able to join the team and trade. After completing the training program, the ad said that the applicant will have to deposit 4k of their own money into the trading account that will be their 'bank' and the company will add an additional 90k into the account for trading.
Is this normal with trading firms (to deposit a small amount of your own funds) to ask for this deposit? If so, what is the purpose of it as obviously it does not make a difference in the total funds for trading if 90k is to be added on top.
thanks.,
is this custom or does this seem like a scam?

Public Comments

1. Never, never, Never pay somebody for the opportunity to work for them. This is --always-- a scam.

Some financial companies may need you to pay a license fee, make sure you write the check payable to the licensing agency, not the employer

2. That smells of dead fish.

With two weeks of training in day trading, the most you could do for me would be turn the computer on.

I sounds like a way to separate you from $4000... because I bet they accept everyone.

You should have posted a link....

3. Sounds fishy here too. Day trading is a pretty high risk undertaking and 2 weeks is ridiculous to think of in terms of trading. I believe you'd need at least a series 7 license and that in itself would take several weeks to study and pass the exam.

4. Scam. If you were trading for a new client or even for an established client you would want collateral from the client, in some cases 100% cash or quality stocks. Normally an agent would have 100% liability for clients' losses (maybe in law a liability equal to the commission share, say 50%). So there would not normally be a requirement for the agent to put up a 4k bond. Two weeks of training?? That seems odd, but I assume you are in US, where anything goes!

5. Watch the movie "Boiler Room". You'll find it interesting.

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