Finding and negotiating with a Prime Broker

Discussion in 'Prop Firms' started by casablanca, Feb 12, 2010.

  1. sent you a PM - not sure if you need to trade OTC securities as well or is it just electronic? Do you use anything like Bloomberg OMS or is it all easy to move from platform to platform?

    PB's vary widely just like prop firms vary. Some prop firms want $10/1000 + $5k training fee + $500/month desk fee + $25k down with a 1-year lockup +++++

    The same shop could offer someone who is more established $1/1000 + $5k down with virtually unlimited BP & overnight BP, etc.

    It depends on what types of securities you want to trade (equities only, futures, OTC, anything synthetic or all of the above) as well as what you need from them - if you need help with capital, leverage, equipment, office space, etc. etc. then you will get charged more. If all you need is an executing broker and some leverage (you have your own computers, office, staff, can fundraise on your own) then you should expect to pay much less.

    good luck
     
    #11     Feb 15, 2010
  2. Guys, this is great - thanks for all the contact ideas. I'll start working the leads during the week and eventually let you know how successful I am. If I put in some info in the thread it might be useful to others in the 'small HF' bracket.
     
    #12     Feb 15, 2010
  3. cstfx

    cstfx

    I think that would be much appreciated (and what this site is supposed to be all about).
     
    #13     Feb 15, 2010
  4. abjrsf

    abjrsf

    Merlin Securities also caters to upstart funds. I used to work under Vermut (CEO) at Montgomery and he is a great guy. They are regularly tops for small funds in the Global Custodian surveys.
     
    #14     Sep 9, 2010
  5. Which of the mini-primes requires the lowest minimum AUM to be taken on as a client?
     
    #15     May 8, 2011
  6. GSEC is $5million minimum. You can get in if they want you as a client at $2.5million.

    I don't think OP can go mini-prime through an introducing broker unless they are setup for this type of thing.

    Look at LEK but don't keep money there, use DVP as LEK is undercapitalized (rumor, i don't know for a fact).

    If you can arrange it I'd use either DVP or Cross-Collateral accounts at a bigger shop like a Goldman or Citi or JPM/Chase where you can aggregate all of your cash to meet firm minimums but yet post smaller amounts out to different places to satisfy margin and capital requirements. Possibly ABN since they have a great deal with Lime might work.
     
    #16     May 8, 2011