Hello! There are many interesting threads about prop futurestrading firms. I am searching for a trading firm in London and visited the bureaux page. Indeed, every firm claims to be the best. But the past is showing that many of these "propshops" disappear as fast as they appeared. I am looking for a firm that is really serious and shows a certain financial background. Some ppl say that some firms let you trade any size you want. Can you name these firms? Are there any traders who have experience in trading with larger firms like Barclays, Citigroup, JPMorgan? I heard that the bonus arrangements are far worse than trading at smaller futures propfirms. I am interested in firms with a strong financial backup who are also able to let traders trade bigger sizes and give them the freedom to trade their own style without telling them to trade a firms "philosophy" . Anyone here to help me to find such an arcade?
You have PM. Realistically, you need a reasonable amount (e.g. £20k) of your own capital if you want "trading freedom". The leverage available on intraday futures is sufficient to do as much size as is sensible without taking on stupid levels of risk. If you have less than this as risk capital, then you'll probably have to accept firm constraints on your trading approach. Ask each firm about how much capital they have, this should give you an idea how safe your money is.
Any firm will let you do what you want if you put up your own money.I know a firm in London if you put up 100k you can trade futures 2 to 1(100k=200 lot position in Bund).Your money,your risk.
I am interested if investment banks act similar to an FCM and what they charge for self-funded traders. I know that they have large proprietary operations. I am not sure if banks offer the same profitsharing like smaller firms do. I am also interested in what they charge for commissions or overhead costs. It seems they are not interested in non graduates as backed traders. These firms hire by recruitment firms and they are very selective. Some weeks ago I watched a TV report and a trading advisor at dresdner said their traders are not fired if they lose 10mio. I would like to know if you have chances to work as a proptrader at these banks with a solid strategy but without a PhD.
Noxqss, With due respect you are comically off the mark. Investment banks don't back independent traders or cater for them at all. They couldn't care less about locals. From a capital markets perspective, they're more interested in structuring $1.5bn EURUSD option deals for the likes of British Airways / Novartis etc. If indeed they are at all interested in locals, it is in making money from them via trading automated volatility / mean reversion strategies on a diversified set of markets; being able to hedge more easily; or use the liquidity to swap into something else. A bank's approach to trading has way more sophistication and complexity than the local's mine-yours mentality. (Unless you work for WestLB ) As a trader at a bank, the going rate in terms of remuneration is in the region of 7 - 10% of what you make for the bank. This is of course dependent on the bank's overall performance at the end of the year; your group's performance; your status; politics, and obviously, luck. In terms of hiring traders, they have graduate recruitment programs. Outside of this, you need to have a connection in the markets or a job near enough the front office to force your way in. The final option is seemingly what motivates the majority of the poor souls in middle office (settlements etc). Perhaps less than 5% become traders. As for your Dresdner story... That depends on the individual's risk profile, track record, how much the person makes, what they think of the trader etc. The number alone means nothing. But... if you think it's easy to lose $10m and keep your job, wake up.