Maverick Trading Review
Prop Trading Opportunity
Maverick Trading is both a stock-options trading educational company and a ‘prop trading opportunity’.
TradingSchools.Org found the educational experience to be of high quality and very useful. But very expensive at $6k upfront and $199 per month, in perpetuity.
The ‘prop trading opportunity’ is very much not a ‘prop trading opportunity’ It is quite simply, a marketing gimmick, and a ridiculously bad deal for participants.
Thanks for reading today’s review of Maverick Trading
What is Maverick Trading? The company is a trading educational company with a component that they describe as a “proprietary trading opportunity.” So essentially, there are two aspects of the Maverick Trading business model that this review are going to focus on: the proprietary trading component, and the quality of the education component.
The name of the company is Maverick Trading, and so with this Western theme in mind, I decided to guide the review using analogies from the Clint Eastwood classic movie, The Good, the Bad, and the Ugly. For all you youngsters and millennials out there, if have not seen this movie…you are missing out on a timeless classic. A tale about the duality of mankind, the things we do to each other in the pursuit of money, and how any person can easily interchange a role from villain to hero. So let’s jump into this…
A review of Archive.org reveals that MaverickTrading.com began offering a trading educational service and prop trading opportunity sometime in 2009.
Now that we know the players involved, let’s first take a look at the Proprietary Trading component.
Maverick Trading: Proprietary Trading Opportunity?
In the past 2 years, TradingSchools.Org has received nearly 50 requests to accurately and efficiently describe exactly what is the proprietary trading opportunity. Truth be told, the website is very opaque in describing exactly what is being offered to the potential, proprietary trading customer. In fact, to gain an accurate description of the proprietary trading opportunity, you must work your way through a sales funnel of recorded videos. The videos are quite long. And the sales video’s purpose is to walk the prospect closer to the core of information that the client is seeking.
In a nutshell, the client simply wishes to know if Maverick Trading is going to give them a fully funded trading account that starts at $25,000 and goes upwards of $800,000+. Maverick Trading leads the client through a primrose path of salesmanship, showmanship, manufactured scarcity, and purported exclusivity. They want you to feel that you are lucky to be watching the presentation video, lucky to be presented with such an amazing opportunity, all the while giving the impression that “not just anyone can be a Maverick Trader.”
The culmination of the sales presentation ends with a ‘qualifying questionnaire’ that Maverick Trading applicants must complete and send to the sales department, which appears to headed by Darren Fischer.
TradingSchools.Org went through the entire sales process. And we asked all of the questions that readers have been peppering us with, over the past two years. First things first, lets take a look at the supposed payouts, if you receive a funded trading account.
Ok, so funded accounts start at $25,000 for an ‘Associate Trader’ with a profit split of 70/30. The company keeps 30% of the profits and the ‘Associate Trader’ keeps 70% of the profits.
If the trader is profitable, then the person can achieve even greater funding capacity and increase upwards to $800,000+ with a reduced profit split of 80/20. Looks great on the surface right? Ok, before you get all crazy and pile into this thing, let’s take a look at the “The Good, the Bad, and the Ugly.
The Good, the Bad, and the Ugly of the Maverick Prop Trading Opportunity
First things first. This is not a ‘Prop Trading Opportunity’. Not even close. In fact, this isn’t even a prop trading company. A prop trading company implies that the company is taking a financial risk on its traders. Maverick Trading takes no financial risk of losses with any trader. Ever. What?! But that fancy table say’s that I am getting a starting balance of $25,000 and as I get better at trading, then I get $800,000. Hold on Warren Buffet. Let’s look at the fine print of this ‘prop trading opportunity’.
Each new Maverick Trader must pay an upfront fee of $6,000 for a trading education. The education process typically takes 4 months of watching training videos titled The Markets Masters Trading Course. The new Maverick Trader must also download a free trading simulator by ThinkOrSwim and trade consistently for a period of 2 months or 50 trades. All the while, the person is paying an additional $199 per month in continuing educational costs directly to Maverick Trading.
Now, suppose that after a few months of successful demo trading, you have been granted the coveted title of Associate Trader. And now you are expecting that $25,000 is going to magically appear. You want to start making some money, right? Hold on Warren Buffet. Before you start, you must deposit an additional $5,000 with Maverick Trading. This $5,000 that you provide will be used to open a trading account with Interactive Brokers. Maverick Trading will supplement your $5,000 deposit with an additional $20,000 to provide you with additional leverage.
But here is the ugly part. You are not allowed to lose any of the $20k that Maverick Trading is providing. They are not risking a penny on your trading. They are simply helping you to obtain additional leverage with your $5k deposit. So if you lose any money whatsoever, you are responsible for 100% of the losses. If you lose your $5k, then you are done trading. Have to come up with more money, and quickly because you are paying an additional $199 per month.
So let us recap this ‘opportunity’. The first step is to pay $6,000 upfront for education. You must then proceed through a 4-month educational program, and pay an additional $199 per month to use a free simulator and to continue to interact with the educational materials. If the company deems that your simulated trading is OK, then they will allow you, to give them an additional $5,000 to open a trading account in their name. Any profits that you earn from your own trading account must be split with Maverick Trading 70/40. You are responsible for 100% of any losses.
Can someone please explain to me how this is a ‘Prop Trading Opportunity’? Maverick Trading takes absolutely zero risks on anyone.
Ok, so now that I have bashed the supposed prop trading opportunity, let’s talk about what I found positive with Maverick Trading.
Maverick Trading Review: the educational component
Darren Fischer is a really nice guy. He runs the sales department. We spoke over the telephone and I really peppered him with tough questions. He was more than open and transparent with me. In fact, he gave TradingSchools.Org complete access to all of the educational modules.
Maverick Trading is primarily a stock options educational product. As I mentioned to Darren over the telephone, what I know about stock options can be fit into a thimble, and there would be room for both of us to jump in. After reviewing some of the training materials, I found the training modules to be very good. They have taken a lot of time to slowly walk the newbie from point A to point Z. Everything stair steps upon the previous material. If something is confusing or difficult to understand, Maverick Trading is more than ready and willing to help a person through the learning process.
Maverick Trading also offers a Wednesday midweek recap, and a Sunday meet up. Both the midweek recap and Sunday meet up are excellent. Much time is taken to discuss the weeks events, and how different financial sectors are responding to current world events. Once again, very good and informative information that I certainly enjoyed watching.
My sense is that these guys have absolutely no interest in providing crappy financial commentary and rhetorical clutter. They certainly care about the customer.
Maverick Trading Education Review: the good, the bad, and the ugly
One of the best aspects of the educational program is that Maverick Trading forces each trader to keep a highly detailed trading plan and maintain a strict risk procedure. Since a person is trading with a live trading account, even though its their own money, Maverick Trading keeps a close eye on what the trader is actually doing. They basically act as a risk manager to keep people focused and not blowing up their little trading account. Remember, Maverick Trading isnt actually providing you with a trading account. Instead, they are attempting to help you remain accountable and not blow up your meager $5k.
Another thing that I found highly useful and very valuable is that the guys at Maverick Trading are providing trading signals of their own trades. These trades are transparent and trackable. The following screen shot is a recent tally of trades that someone at Maverick Trading had recently closed. There are over 400 of these closed trades.
This is reassuring because it shows that these guys are actually trading, it is the education in action. In addition to being transparent about closed trades, there is an additional spreadsheet of prior closed trades. Screen shot below…
Once again, this is very reassuring because it shows the education in action. I find this sort of transparency to be very refreshing. Certainly not the norm.
What did I not like about the educational experience? The price is expensive. At a cost of $6,000 and $199 per month, you are looking at over $10,000 per year to essentially watch someone trade. There are plenty of trading educational services that are offering a basic options educational experience at a much lower cost. The course modules are certainly nothing revolutionary or groundbreaking, but a good basic primer on how to trade different options trades.
The real value is the proven options trading signals and the community interaction that many students will find helpful. Another thing I found refreshing is that Maverick Trading avoids day trading altogether. The options signals typically last several weeks. In the past couple of years writing these trading reviews, I generally recommend that newbie traders avoid day trading altogether. It is refreshing the Maverick Trading agrees with this approach.
Wrapping this up
In my opinion, the ‘prop trading opportunity’ is a ridiculous marketing gimmick. The Maverick Trading website marketing implies that every newbie, fresh-faced country bumpkin is going to get $25,000 to $800,000 in ‘free trading money’ is just silly. It’s laughable really. As I sat in my chair drafting this review, I couldn’t help but repeatedly giggle that anyone would actually believe such a ridiculous thing.
But the truth is that these “we will fund your trading account” schemes are now a very common marketing gimmick that more and more trading educators are employing to corral in the naive and desperate, looking for something free. It’s just not true. Nobody on the planet is giving away free money to trade.
On the other hand, I dont want to discount the value of the educational experience at Maverick Trading. I found it quite good. As a stand alone product, I would give it a great review. But the ‘free trading money’ sales pitch greatly cheapens and casts a ‘shady’ shadow on the educational experience.
A few years ago, many of these trading educators could charge $6k upfront and $199 per month for a ‘trading education’. But those days are over. So it appears that Maverick Trading threw in this ridiculous ‘free trading money’ idea to keep the profit margins on the educational product nice and plump.
Thanks for reading. And I really want to know how ‘the crowd’ of TradingSchools.Org readers feels about this latest “we will fund your trading account” trading company. So leave a comment. Let your voice be heard.