Becoming a Prop trader

Anyone have advise on what companies look for in prop traders and how they find them.

Also, what are the interviews like?

 

I'd recommend Echo and Bright however, there is a list of prop firms on the site with the traders reviews.

 

Anyone got insight from the inside, maybe personal experiences on how you found your first Ibanking Job and what it took to break in.

 

tell me what you think a prop trader does all day and I will give you info

 

They look for people with the ability to pay their deposit. Interviews are like "can you write us a check?"

 

Idea of a Prop Trader: someone who trades firm (or bank) assets in order to generate a return.

Not looking for advise to get into a small shop but rather an investment bank.

 

So this is all it really boils down to? I am having second thoughts about joining.

 

Well, there are certainly different definitions and business models for "prop" traders. There is a mountain of difference between the equity firm prop model that takes a deposit, versus the Chicago futures prop firm business model. In fact, the CME will not allow electronic member firms to take an initial trader capital deposit - the trader must get paid on a W-2, and only the firm's capital must be at risk.

Headhunters and firms tell me that these days nobody wants to take on directional risk - they want an arbitrage or a spread or some sort of hedged relative value strategy. There is money to put to work, but it is scared money.

 

they recruit from top schools. i am surprised you didn't know that.

 

futures prop firms are only allowed to payout a max of 80 % of profits

your a actual employee of the proprietary firm