Asking the right questions

Discussion in 'Prop Firms' started by lojze, Jun 18, 2002.

  1. lojze


    I want to start trading with pro firm. Not as an employee, but as an remote trader.

    Which are the necessary questions to ask when choosing the right firm?

  2. If you want remote trading, open up an account with Datek. It's a lot cheaper than going through a prop firm. Remote trading with a prop firm is almost the same as being a prop trader. The disadvantage is that you still have to put up a large deposit and you get zero training. Datek has access to Level 2 quotes anyway.
  3. lojze


    Actually I am already with IB, and Datek is not as good solution as IB.

    So the real question is still:

    Which are the right questions when choosing the prop firm?

  4. The right questions are how much capital do I put up? How much does the firm have? What percentage is the traders and what is the owners? What are the owners long-term obligations versus their capital. What are their lease obligations or contracts that will erode their capital over time if the firm breaks even? What are the risk procedures for the firm? Then ask about rates...
  5. lojze


    Hi Newatthis,

    Is seems that you are not new at this. Thank you for your input.

    Questions are good, but how to know, if answers are honest?

  6. the name derives from when I first tried to post and had all sorts of problems on my end. Technology is good, just not to me.

    The only way to know if the answers are correct is to ask them for an audited balance sheet.
  7. lojze


    Hi New....,

    Are you also a prop trader?

  8. you have to ask yourself what advantages you will get by being a prop trader if you are already using IB and happy with it.
  9. lojze


    Hi Dot,

    Those are my answers:

    1. I would easily jump over the hole between my current capital and 25K in order to daytrade
    2. I would be able to short on downtick
    3. I would have more capital available than with 4:1 margin with IB

    Maybe there are other advantages, are they?

    Help me - am I right?

  10. I am a customer. Used to be a prop trader, but for the very reasons you want to be prop I wanted to be customer. I get 4:1 on my money. No risk of an LLC. Good rates, etc.
    #10     Jun 18, 2002