are prop firms illegal?

Discussion in 'Prop Firms' started by increasenow, Oct 13, 2008.

  1. Do your own research, thanks!

     
    #21     Oct 16, 2008
  2. cashonly

    cashonly Bright Trading, LLC

    There are many different structures out there.

    For example, you can have a large Well Street firm where a trader is an "employee". He's doing an acceptable job in his position, then another division leverages out on CDO's and the firm tanks (ie: LEH) and now this employee is "let go" even though his trading was fine.

    Or, in another example, you can have a structure like Bright's where there's just one division - proprietary stock trading - and traders are not employees. So, when the guy sitting next to him gets stupid, and blows out his account the traders who don't do that are fine and keep on doing business as usual.

    In fact, traders in the first case have been known to come companies like Bright with their knowledge and have a far better bottom line than when they were with the big Wall St firm.

    So, yes there are differences.
     
    #22     Oct 19, 2008