If I simply open account and start trading it on my own I will pay dearly, this what happened to me when I started trading stocks 4 years ago. I want to prepare myself and I do not want pay any monthly fees right now as I do not know what to expect from this trading. Right now I can not tell the difference between Xtrader and Pats all shops that offer futures trading want you to pay monthly fee and start trading as much as possible. If I open account with IB and do not trade for a month or two do I have to pay to them anything ?
unless one is trading BIG size several hundred to a thousand or more contracts, why go prop ?? perhaps there is superior software that is only available to prop shops--other than that, i can't think of a good reason to trade prop futures. yes, checking out a firms financials should be the very first step in determining if you should go with them. if they refuse or hesitate--- RUN ! best, surfer
Just out of curiosity, I have no interest in prop trading, how much leverage would a prop futs shop offer? The risk profile approaches warp 10 fairly quickly.
Rather than increased leverage Banjo, the allure of prop futures is the much lower than retail commissions.
Member status and ability to bundle contracts is the reason that future shops work. But most of all, education and proprietary systems that offers the new market participant an "edge" to make a living at the screen.
WHOOOOOOA!! "unless one is trading BIG size several hundred to a thousand or more contracts, why go prop ?? " several hundred? hmm....you MUST have a lot of dough and had a lot of experience when you started surfer. ....let's just look at a hundred? 100 lots in treasuries, for example....1,562.50 per HALF tick? i also think they would make you put up about 1,500 per contract or so....there is a min. of 15K you put right up. and now you are just starting out? not gonna make any bad trades are you? or maybe not!! let's see...drop 5 ticks? seems reasonable? another 15,625. better not have another losing day!!! unless you have 45K burning a hole in your pocket. several hundred? better have 100plus the first couple days. big leverage means big risk pretty quick! prop shops will take this sort of risk but not without a long track record. most can also give you the education and risk management an inexperieced trader lacks. unless you have a lot of dough to burn or experience in making money, going through a prop room isn't always the wrong thing.