just to clarify a few things. The 8$ roundturn was for 2000$ account with a risk manager watching over the trades. GreenTree also has normal retail accs with low margin and 4$ roundturn. Additionally they're setting up pure prop futures operation trading in NY and SF with commish down to 1.50$/roundturn
I have checked my e-mail from greentree trading and the price quoted to me was for a 5k account. Indeed $8 per round trip is far too much risk in exchange for the added leverage they provide. Perhaps there are firms out there with lower rates? If so, I would like to hear from them. Trader ###, I wouldn't give you my money even if you offered me 6.50 round trip, but go ahead and make the offer
I still don't get the logic behind prop futures trading. There is already tremendous leverage in retail futures, and at much lower commissions (using the $8 trip example) and you don't have to split profits with anyone. If you have to put up $5k, why not just trade with a firm like IB? Perhaps the prop firm is somehow willing to give you better than the exchange minimum margins (which are low enough to take out even the most well prepared trader). How long do you think your $5k will last trading more than 2 ES contracts? Maybe if they were willing to let you go into firm capital to cover losses, but I would bet that is not the case for a new trader, and if it were, the leash would be very short. I just don't see any benefits here other than for someone wanting to gamble with their initial deposit hoping for some luck right out of the gate...and that is not trading.
i think you guys are mixing up a few things. From the example above, this was for a normal retail account with 1k$ margin per contract and 2k$ initial contribution. Pure prop futures business has a completely different structure. These guys mostly get a salary, extremely low commissions but get cut on their payout.
Prop futures traders do not have to have any licences, their acct is not SEC insured (every IB Universal acct is) so the only difference is profits cuts against commissions IB charges $4.90 but I've seen retail firms that go much lower. So what are you talking about
excuse me ... but please point me to where i wrote that they need any type of licence??? I said for the company it's a totally different deal. The trader puts no money down, etc. That's why the structure differs from a retail account where the trade contributes an initial contribution. and sure you can go to IB or any other retailer if you're satisfied with the lack of service or help the company provides regards, tom
Can you be more specific on the word "structure". And what is the average salary, commission, for these guys? Reason I ask, is, I am seeing a lot of these firms propping up outside chicago, and am interested. Thanks much...........
Ffast trade at $3.32, but you need decent volume to make up for the platform. Spike quoted me $3.72, but again, platform fees drive up the cost somewhat. Any retail firms lower than this? Jay
You can already get more leverage than you need at IB. One half day trading margins will give you 2 contracts per trade with a 5K account. Add another $500 to the account and you can make that three per trade. Do you really want to trade more than this with a $5500 account? That's suicide unless you are VERY good, and VERY disciplined with risk control. Personally, I think no more than one contract per 5K is good. Many people double this figure even. Jay