Their seems to be some confusion between how the term "proprietary trading" is used on the rest of wall street and how it is used in the "prop" equity trading business. The traditional definition of prop trading is trading the firms money for a share of the profits. Schonfeld, for example, is by that definition a true proprietary firm. Other firms, such as Bright and much of Asent and Karlin define proprietary as a licensed trader using firm capital to avoid Reg T, even though the trader assumes his own risk by way of a deposit and might well receive 100% of his profits. I coined the term "psudo-prop" to refer to those kind of firms.
The vast majority of firms advertised on these boards and at the www.tradersexpo.com shows are these "pseudo-prop" shops. Bright, Echo, Carlin, Hold Brothers, Worldco, Assent / Andover, Van Buren, AB Watley (ughhhh - avoid this one) and others are in that category. Schoenfeld is a tough interview, and a limited opportunity shop. For those fair haired "just the right type" few who do get in there, good for them, however from the majority of those whom I've interviewed they didn't like the process, treatment or the limited chance of success there. Wall Street still specialized in hiring Ivy League MBA's who fit a "certain" profile. The other firms have not strayed too far from there. Those are proprietary shops. The excellent thing that this sub-industry does is welcome all and any who self-qualify (through licensing and monetary deposit) into the much vaunted world of money, high finance and rich living. Cheers all around to the pseudo -prop shops.
dustin, you said "You have to include firms that let you put down $5-15k and they give you access to millions. Otherwise what would they be called?" I would be willing to call a shop a prop if it let's me go millions in the HOLE and all I had to put in was 5-15K...but they let you lose your initial and then it's bye-bye. besides, I can get millions in leverage with 15K in futures already. It would really clear the air if these shops (some being legit) would re-classify themselves as "pseudo" prop. or as i suggest "participant"? or "stake"? "shared prop"? or such and leave the real prop shops to their reward in the use of the word.
wow, just imagine me waling in the door, asking for a seat at the table. Huh, little yellow man walking (someone said)
so, what chased you away from this thread? what offended your sensibilities? what made your stomach cringe?
Nothing chased me away, nor offended my sensibilities, nor made my stomach cringe. You apparently missed my attempt at humor, which I consider a failure on my part, not yours.