The tax side sucks. You lose the 60/40 tax advantage from trading futures. You are a 1099 contractor yet the IRS definition of a contractor doesn't to me fit in with the rules and contract that they impose on you. Also by being a 1099 contractor you are subject to an additional 15.3% SE tax instead of 0 % that you would be liable from trading futures in your own account. The positive of being a self employed 1099 contractor is you can write off some of your expenses but depending on your profitability you are skirting a grey area as to whether your trading is hobby or business. They serve a niche market and cater to people who may have talent but lack the means to act on it. One benefit I could see them providing is perhaps as an edge is knowing in the beginning it it is not your money at stake until you become profitable.
I wouldn't say they were a scam, but if a trader can meet the TST standards/rules then they shouldn't need to go the TST route. I believe there are people out there who, for what ever reason, think that they can day trade...and they can't...it's that simple. Don't misunderstand me here, I'm all for giving it a go, if that's what the individual wants to do. But at the end of the day, people need to understand that if they go to TST with no trading skills they're gonna come away with nothing. It's a case of looking after number one, because nobody else will. Be sensible and reasonable.
Frederick Foresight, Of course I am better off. TST taught me the following: 1. Risk Management of a small capital account. 2. How to handle pressure day to day with its strict drawdown and daily loss limits. 3. It gave me a goal to reach 4. I was able to know my flaws of my trading in real time. Lots of things trading teaches. It's not difference than trading a real account.
volente_00, I left because the trading strategy I was using in TST was not proven in back test or forward testing to make consistent money. In order to get funded, a trader needs a proven trading method (discretionary or automated) that will make money AND AND have drawdown within TST rules. Atleast for 200 backtested trades. I did not have this, so I failed the combined 3 times and failed once funded. So I left for these reasons.
Could you not have learned all of that with your own sim account rather than that of TST, and at no out-of-pocket cost to you?
Frederick Foresight, Yes and No. Yes, I could have set the TST rules and profit target and tried in SIM before going to TST, then saved my own capital. No, I can not simulate real live emotions and pressure in the beginning of trading live. Paying the monthly cost puts skin in the game. The $150 monthly charge is peanuts to blowing an account. Overall, TST is good service to me.
I agree that sim trading does not compare to live trading. But how much money did you spend sim trading on TST? As for the monthly cost making you feel better for having "skin in the game," you may wish to revisit this notion. You could always give the $150 to me. Heck, I'll even give you a 25% friends & family discount just to show you how much I care.
ktmtrader, I lasted about 1 month in funded before hit drawdown and failing. It was fun and challenging. My reason for failing was all MY fault, it has nothing at all to do with TST. Hesitation, fear and missed trades made me fail.