Recieved a job offer today!!

[rmani]

I recieved a job offer today with a trading firm to join the trainee program and go into futures trading. Does anyone else work as a trader? I have a couple questions I need to ask you before I make a final decision. Thanks!

 

[jadkar]

hhhhmmmm......I work in the financial sector, however in a different area. I work for Deutsche Bank on the Technology side. My old company Merrill Lynch has a huge Futures business, personally I can't stand that firm, lots of bad experiences there.

Sorry, I can't help you with any "trader" type advice though

 

[O-Ace]

Congrats! Are they requiring you to put up any capital? NowSeeX's trades futures. I might be able to answer some questions as well.

-awais

 

[rmani]

thanks guys. no required capital up front, 2 mo. training program, small salary + benefits + bonus.

Basically they want me to guarantee i won't switch firms for the first 5 years. it seems somewhat justifiable but just a little odd at the same time. I don't like being locked into doing something. I still need to get details on the commission split and a few other things but my main concern is the 5 yr contract deal. If I leave before 5 yrs i can't trade with another firm until after 5 yrs is up. also does this seem like it could be a pretty lucrative position? My old bosses last summer when I interned on the CBOT were making ungodly amounts of money but they were also trading options along with futures. just curious for your input since this is one of the smarter boards I belong too.

 

[Dtrigg]

In several states a non-compete clause is not able to be enforced. Basically it doesn't allow you to work for another company, and consequently earn a living. What would happen if you discover after a few months that your new company sucks? Does that preclude you the right to gain employment.? Check with someone that knows your labor law in your state. Also, five years is LONG time. The most time I have ever heard of is one year or 18 months. I also know a guy that went to court and won against a non-compete clause.

Good luck,

Doug

 

[rmani]

i talked to a friend of mine and he has told me a few other firms require several years but 5 is a bit excessive. The firm also told me though that the first year is flexible and after 1 year if you aren't a good fit it's no problem if you leave. BTW it only says I can't trade anywhere else, but I can work anywhere else. Just thought I'd clear that up. Thanks for the replies.

 

[Dennis in SE PA]

Non-compete clause info

Been there, done that. In most states they cannot enforce it for rank and file workers, but can for top execs. Cannot enforce means a judge will throw it out of court, when it finally gets there. It could be years of a cease and desist order and thousands in legal fees up until that time though. I will NEVER sign one again.

 

[KGP]

Does the contract allow you to trade your personal portfolio?

Basically they want me to guarantee i won't switch firms for the first 5 years.

Any distinction between leaving voluntarily and being dismissed? Personally, I would expect restrictions from leaving voluntarily, but the question is: how much of a restriction.

 

[rmani]

if i am fired it doesn't matter, but if i leave voluntarily i am not supposed to go and work for another trading firm, that's really the only restriction. i am a recent grad so i don't have a portfolio to trade, but the person i've been speaking with told me many traders do sometimes leave or just use the company as a clearing firm and they just trade their own capital.

 

[emvanderpol]

The only two states that do not enforce a "non-competition clause" are California and Wyoming, but in the other states it is an easy battle to win (for you that is). However, the "intelectual property clause" holds in all states. This essentially means that if they train you in a unique process/method of doing this form of work, you cannot use their method at another firm. This includes, primarily, use of any contact lists, which it the most common misuse of the clause.

Good luck.