Hi aetrade, if you live in Europe or if you are willing to move there, you can still find many futures prop trading companies in UK/ London and also a few in other countries, for example: - Tower Trading Group, London, I think they also have offices in Essex, Dublin and Gibraltar. They also offer remote trading. - Arjun Capital, London - Hamilton Court Capital, London - Arfima Trading, Spain/ Madrid . . . Greetings, CALLumbus
Garachen...how have you been? Do you still have a trading staff? Do you still use DOM tactics or have things changed in the markets too much?
As Xela says. Funds allocated has no meaning. There are no funds. Just size and risk. Generally, you wouldn't keep any IP. Maybe with the exception of something you worked on before and never touched while employed and had no expectation that you would be bringing it with you. But if you trade it there, they probably will own it. You are typically not allowed to contribute capital. If you are lucky they might eventually allow you to contribute $250k to get the pass through tax treatment. There are other firms out there that will take your money, give a higher payout and charge higher commissions. They have almost no capital, tech or relationships. You'd not be expected to succeed.
Thanks CALLumbus. How do the profit sharing deals works. Let's say a UK or EU firm asks you to put up $50,000 in exchange for a 60/40 profit/loss split. How does this work in practice? How much capital are you provided in addition to your 50,000 deposit? Or is there no additional capital provided, one being merely provided increased trading limits? How are profit and losses calculated and split? How does the firm protect itself from losses? How does the trader protect his/her $50K deposit? Any tips, warnings, and suggestions for these futures prop deals?
Could you not also lose your trading stake 10-100x faster than you would by using the prop's firm capital or increased trading limits?
Some firms ask you to put up a stake set at a minimum level say $X, 000. They then share profits with you in a ratio of say 60:40. How does such a scenario benefit the trader?