What are your assumptions based on? Not all props are equal. When you trade prop you are leaving yourself open to risk from the firm, other traders and you have no SIPC and be sure they clear through a reputable firm. http://www.elitetrader.com/et/index...ppears-with-our-deposit-after-title-t.294886/ http://www.thetimes.co.uk/article/firm-where-flash-crash-trader-first-worked-fails-sl8h87s7p
The additional risk of losing my initial contribution doesn't bother me. What I'd like to know is if there is an equity prop firm that can assure the same, or better execution and inventory than IB offers me. Without that, the additional leverage and lower commission is useless
You do realize that to join a prop firm eg Bright Trading you'll need $50k. At the time that I traded prop some could have ( pre-2013) now I don't know.
So I recently contacted a reputable equity prop firm just for shits and giggles, and asked if they were looking for any traders. They replied "Yes, we are looking for for consistently profitable traders''. I responded with the following: 1. Provide them a 2 year track record 2. Trade my capital only with 100k initial contribution 3. 20:1 intraday leverage 4. Average 7-10 trades a day 5. 95% payout with the potential to get closer to 100% within 1-2 years 6. Also that they provide competitive commission/software/office fees They completely ignored my response. WTF do they have to lose here? LOL
Dude don't even think about Alaric. Alaric trader is going out soon. Lot of issues with there funding. Providing leverage is way too tough for them. The sole reason why a day trader open an account with a prop firm. Leverage and commission. They have now all of sudden started asking for higher commission like a broker and provide leverage like a broker (4:1 intraday). 2:1 overnight. I give it a few months top. Get out people (when you can).
Just for clarity, IB completely sold off their proprietary trading arm (timberhill) about 9 months ago.