Extremely. Started by former SIG guys - very secretive, very high-tech, and very selective. They pay thier assistants more than anyone on the street and are on the cutting edge of derivatives arbitrage and make markets in many such products. Located above the Trinity Church on Bway.
Here we go again. Most daytrading firms don't like the stigma attached to the word "Daytrading" opting instead to call thier daytraders "proprietary traders." It's a misnomer. A daytrader puts up money and the firm with which he trades, makes money off his commish and often a split of his p/l. They have no interest in his strategies as long his equity doesn't go negative. The interests of the trader and the daytrading firm are often diametrically opposed. Striking a balance between volume and personal profitability is a constant struggle. Prop firms, on the other hand, develop "proprietary" strategies and often the trader's compensation is indepenedent of the P/L yielded from those strategies, though rest assured - the trader who can't develop or execute profitably, won't be around long while those who excel are compensated in-line with thier contribution to the firm's bottom line. For the purposes of this discussion, however, the key distinction is that daytrading is accessible to you while prop trading is likely not (unless you are at an ivy reading these boards between classes).
jane st does huge volume, have a lot of MM's on the floor. Someone from JS was in Trader Monthly a few issues back. They're pretty dang smart, recruiting from mostly MIT and such schools. i speak very highly of them, they are definitely hard to get in, not for the avg piker.
I dont really have the time to go into this in detail. I will skim over the subject and hope that others will fill in the gaps. Prop firms approach making money from a different perspective. They are composed largely of former retail traders, who want to obtain professional status. In theory they sponsor the retail prospect through the licensing process, providing training so that they can pass, and learn to make a living. The sponsor (the business owner) then leases a desk to them and charges them a negotiated commission to work in their office (much like a real estate firm). Depending on the firm, they may operate as entrepreneurs making money on the net of trades, or as in some firms, they may be simply generating commission and rebates to the owner (in effect they are simply churning the market with the owner making the bulk of profit) and the trader essentially treading water (or replaced by another when they lose their deposit equity). That is why it is so important to research "so-called" prop firms in depth. Presumably you would want to be involved with one that will provide good training and help you to be profitable rather than just milk you for commission dollars. I realize this summary displays my own bias. Sorry but that is the way I see it. Hope others will appear to correct any errors of fact. Good luck Steve
I asked an honest question, thank you for the honest answer. I hope it wasn't too much of a bother. Lucky for me, both of your assumptions are incorrect. Jane Street picked up 3 kids from my school last year - along with Goldman, Lehman, Merrill, Morgan and some other smaller banks.
Hyperbole, my friend. Hyperbole. No need to take my tone literally. I do hope you get my drift in that if you are a 30yo looking to "get into trading" Jane Street is not the place to be hoping for your shot.