Is there any good prop firm for new traders?

Discussion in 'Prop Firms' started by sp2020, Feb 10, 2014.

  1. kashili

    kashili

    interesting thread for a wannable trader (me)
     
    #31     May 3, 2014
  2. You may want to check out Chimera Securities, they have a training program for new traders. And they don't make you front $5k or 10k in "education fees" like some other firms.

    Also, they are registered prop firm, meaning you'll eventually have to get your Series 56.

    http://chimerasecurities.com/index.php?page=new-traders
     
    #32     May 3, 2014


  3. Rates and commission splits are negotiable. That's a very hefty commission rate, especially with a 30% haircut.
     
    #33     May 3, 2014
  4. d08

    d08

    From what I've seen, PM doesn't differentiate between intraday and overnight positions, that's what IB people on ET have mentioned as well.
    They can take away PM if you're acting reckless and yes, PM does penalize concentrated position.

    Margin requirements for the above-mentioned orders are exactly the same as for any other position, you really don't know what you're talking about apparently. Props also keep part of your profits, which is like added commission.
     
    #34     May 7, 2014
  5. Maverick74

    Maverick74

    Actually, the layering out of orders, is one advantage of prop over retail. The Brights push that pretty hard. For example, a trader at Bright could have 500 limit orders out pre-market on their opening order strategy that could "theoretically" tie up 10 million in capital for a trader with just 25k or 50k in their account. The Brights backstop this with their own capital. A retail account would actually freeze up the margin for each and every limit order you have out there. The idea of course is only a few handful of those orders will actually get filled. That's one of the major drawbacks of retail accounts. Once you have a pending order, that buying power is gone. That makes it very hard to have those "flycatcher" type strategies.
     
    #35     May 7, 2014
  6. d08

    d08

    As far as I know, brokers like IB handle it exactly like Bright.
     
    #36     May 8, 2014
  7. Then as far as you know you would be dead ass wrong.

     
    #37     May 8, 2014
  8. 1245

    1245

    -PM can offer greater leverage during the day if your account is >$5M
    -concentration penalties are house rules, not OCC PM rules

    1245
     
    #38     May 8, 2014
  9. 1245

    1245

    Sorry, incorrect. For a CPM accounts under $5M, your broker is responsible for monitoring your haircut throughout the day to make sure you don't use too much margin. Some institutional accounts will let you go into a call if they feel the account can provide funds T+1. Retail online brokers will never do that without speaking to risk at the firm.

    A prop firm can provide as much leverage as they want within their firm capital and their JBO deal with their Prime broker. Just not the same.

    1245
     
    #39     May 8, 2014
  10. d08

    d08

    Did you guys even read what I was replying to? I was replying to
    "For example, a trader at Bright could have 500 limit orders out pre-market on their opening order strategy that could "theoretically" tie up 10 million in capital for a trader with just 25k or 50k in their account."

    Yes, you can submit LOO buy orders that could theoretically amount to 30:1 or more in leverage. When violating ca. 6:1 with PM, IB will liquidate in the first 10 minutes.
    An outstanding LOO order doesn't lower the current buying power.
     
    #40     May 9, 2014