A bucket shop is not a "boiler room", nor is a prop shop a boiler room, what are you talking about? The key word there is leverage, much more than retail, that's why prop firms still receive plenty of appeal -- http://themarkettruth.blogspot.com/
There are a few things a "prop" (licensed) trader can do that a "customer" cannot (leverage was already mentioned). But, if you don't know what they are, it's probably not worth talking about. Along the lines of the cliche... "if you have to ask".
Basically the way I look at it, "prop" is good for someone who is trying to get their feet wet, learn how to trade (through mentor, trial and error, or a firms "training" (which is 95% of time BS).. If you can become profitable (ie on a small scale), gradually learn and fix your bad habits, and get enough $$ to go retail you should... The only bad thing about retail IMO, is sitting home alone trading .... However, if you can go prop, get profitable and survive the charges and learning curve, your chances of gettign a job at a hedge fund/ or some similar salaried firm should be increased. If you can afford to go retail off the bat and survive the "educational costs" by all means do it. I think, that by being around other traders, you can pick things up in your learning process. my .02
Are you kidding me? You really have no clue what you're talking about do you?No real prop shops here? I'm with one of the best right now and they're not only a prop shop but have all the backend office deal all centralized, They have no quotas or minimum positon size per day you have to go through. The execution and support are second to none. Have you ever even trade for a prop shop before? Or have you traded before period? I have heard alot of stupid crap from many different people but yours tops the cake. It's not only idiotic but completely ingorant as well. Perhaps you need to find another career path.
in this context, there are two types of accounts - prop and customer. prop is when you trade someone else's money. if you trade your own, its customer. it doesn't matter that you put up risk capital. the account is still not yours and is not under your name. therefore, by definition, its prop.
This is basically the right attitude. I see so many people talking trash about props that require putting down (or building up) some capital, and so many people here who get angry over it. I think retail is best for many people, and it certainly has certain advantages (such as not risking your capital going down with the firm-ie having capital insured), but prop works well for many others. But for those who don't get it, who the hell cares. Why bother arguing about it with people who have no bearing on the deal one gets or one's trading. Sometimes I even get a kick out of it, just as I get some small enjoyment out of people who ask me what I do, and then they figure I'm one of the relics losing my lunch money in my parent's garage. I don't bother proving otherwise, I just smile and walk on. But that's just me!
macfutures/refco BTW: why you have to rent a desk at any retail firm (about $1,500/2,500K a month/plus com) when you can rent a seat at Nybo/comex for 700 bucks a month and much less com and have a real EDGE commodities are very hot since 2001.. In the US Dollar index Pit they're taking 5 ticks spread!!! (50 bucks), you want a better business than that?????
Definately an option, although an inexperienced trader could get hurt very easily trying to trade on a commodities floor... and let's face it, many people that jump into retail/prop are inexperienced -- http://themarkettruth.blogspot.com/
i brought a few traders in to echo and was promised the override...but never rec'd it....mgmt there is bush league!