Information on Maverick Trading...

Of all the things I've heard and read about prop trading, Maverick Trading seems to be very unique in their approach to the industry. They don't scalp or even day-trade other than a little bit with futures and Forex. Their primary focus is on spread trading equity options. When I first started this process, I was really looking for a place to trade equities but at a slower pace than most firms desire. However, as I watched their introductory video, I became more intrigued with their methodology. A lot of what they said made a lot of sense to me. They echoed my sentiments that the markets are no place for hobbyists. They focus on safety through disciplined risk management and position-sizing. They allow for trading in all asset classes. After talking to one of their recruiters on the phone for about 30 minutes, I had the rest of my questions answered. Here is what I found: they don't take a piece of commissions. They benefit from profit splits. They do have a $5000 lifetime membership fee to enroll which grants you access to all of their training (I couldn't find a single bad review about their curriculum or instructors anywhere) and it also includes one-on-one coaching (3 ninety-minute sessions that can be used at any time necessary from one of the senior traders) and access to their trading rooms and live interactive chats. They do have desk fees of $199/month, but they pass through their rates on commissions and rebates ($0.005/share and $0.50/options contract due to the lack of high-frequency). Their training isn't mandatory, per se, but each trader needs to pass proficiency exams which are covered in the classes. All trading and training is done remotely. Their office is based in Salt Lake City, but 95 percent of their traders trade remotely. I spoke with a few of their traders and they said that the community aspect was the best part of trading there. Between chats, emails and phone conversations, the firm is completely interactive. They give out live trades that their traders are welcome to trade them also. They do not require a Series 7 or any licensing, for that matter. They pay out, similarly to the other firms, with a K-1 for tax purposes. To trade with firm capital, traders need to pass the exams and show proficiency in a demo account (1-2 months worth). Then they need to contribute a $5000 risk deposit which is completely refundable immediately when the trader leaves. The firm puts $20,000 behind that money so that beginning traders have $25,000 to work with plus the portfolio margin which is roughly 5.6 to 1 for overnight positions, so about $125,000 in buying power to start and then moves up incrementally as the trader books profits consistently. To go along with this, the trader starts off keeping 70 percent of the profits, and then moving up to 75 and finally 80 percent for the senior traders. The trader is never required to bring additional capital in to feed their accounts as they grow. The firm adds all of the additional funds. Basically, they reward their high-flyers. They do not lock up your capital for any period of time.

Conclusion: Maverick Trading is unique in its approach to this industry. One of the concerns I have is that they seem to be much smaller than a lot of the firms I looked into. They have a recruitment process and only bring on certain traders. You have to fill out an application and speak with their recruiters. They also stink if you are looking for high-frequency trading. They don't support it or recommend it in any way. In fact, they actively ward against it due to the horrible success rate of that style of trading. Everyone I spoke with was very helpful and informative. I kind of played dumb to see if they knew what they were talking about trading-wise, and I was very impressed. Definitely knowledgeable. They aren't completely polished, but something about their sincerity struck me. I guess I would sum it up as Maverick is probably a great place to get your beak wet and really learn trading with the ability to trade decent amounts of capital for those that don't already have sizable accounts. If you have 10-15 grand to trade with, and you aren't looking to scalp or day trade only, this seems like it would be a great place to plant yourself. For people that are broke or have huge accounts already, it probably isn't for you. I was impressed. I may join someday soon. 4.5 stars out of 5. Thanks for the info Jeff (recruiter).