What do you guys think about Maverick FX and other Prop shops?

I had come across an ad one day about a prop shop called Maverick FX. The way it works from what I understand is that you have to buy in to their model. You put down $5000 of your own money for "risk capital" and then you are given additional leverage from which to trade. You then have to pay an addtional $200 a month in platform and educational fees. If you exhaust your risk capital, then you are done or have to put up more. If you do well, they give you increased leverage. The profit sharing is such that you get to keep 70% to 80% profit. They have a very similar model for the stock market as well. I guess I just don't understand why anyone would even need addtional leverage in forex. In the stock market it makes more sense, especially with the PDT rule and only 4:1 intraday leverage, but with forex offering as much as 1000:1 leverage in some cases, does any one know anything about this shop or why it would even be a good idea?

Bump! Anyone??

I don't think it's a scam. They are very up front about how their system works on their website.

It sounds fun but I doubt it's a good idea.

Just do the math. They charge $200 for desk fees each month. You only risk your own money (the firm risks nothing). You pay them 30% of all profits if you're lucky enough to have any. The deck is stacked against you. I'd be surprised if 3% of their traders last longer than 1 year before they get blown out.

On the plus side the structure is appealing. Being part of a firm sounds cool and appealing. The community of traders is appealing. The weekly conference calls sound useful depending on how they are given.

Maybe if you have a bunch of money and you find enough value in the plus side (at least 8k for the first year) you can join and then trade your own account with a real broker on the side. haha!

Bottom line is if you've been around for a while you know how hard this game is. Lots of people willing to take your money but not a lot making it!

bump....Maverick is still around, anybody here on FF have any experience with them?

Their ads are on craigslist regularly:

https://seattle.craigslist.org/est/acc/7100502492.html

"Each trader starts live trading with a minimum of a $25,000 account and keeps 70% to 80% of trading profits. As you gain experience and demonstrate consistent profitability you become eligible for greater amounts of the firm's capital. Our top traders can trade up to $800,000 and can potentially earn over $100,000 per year. Profitable traders are also eligible for Performance Bonuses."