Need Help on Prop Shops

Discussion in 'Prop Firms' started by Equity Trader, Oct 23, 2003.

  1. I am currently looking for a Prop Shop to trade for. I am looking for a Prop Shop that requires little, if any, initial deposits. I realize that there are very few nowadays. I would prefer the shop to be in Florida and I am looking for the initial deposit to be $5000 or less. I realize that these shops that require little deposit will probably eat you alive on fees, but I would like to at least take a look at them. If anyone has worked for, or currently working for a prop shop in florida and can tell me about them, I would appreciate it. I have found one, but would like to be able to review others. THX
  2. burnin


    if somone shows up with a white residue powder on their nose and wants you to deposit money with worldco.....RUN
  3. vega


    If you use the search button in the top right corner, you will find a wealth of knowledge. In case you're not aware, there was major trouble at worldco recently, so when you receive replies similar to good ol' burnins', that's what's goin on. I have no info on any prop firms, but a lots of people here can give you advice. Best of luck, and while you're waiting for replies, search through some of the old threads in this forum to get some more info.

  4. What is your skill level?
  5. I currently possess a series 7 license and I am a full service broker. I did some daytrading on my own for a while before I became a broker. However, I still consider myself a newbie in the daytrading field. Therefore, I realize that my lack of experience may limit the number of shops available. However, my desire still rest in becoming a successful daytrader. If anyone knows of a prop shop that requires little initial deposits (if any) and is willing to train (even if their training is subpar in your opinion), I would like to look at them.
  6. I appreciate the advice to avoid WorldCo. I was aware that they were having serious problems.
  7. The only prop I know that doesn't require any $$ is Shonfeld...only boca office a ghost town i hear. Have a great attitude and give em a shot....I don't even know if they are hiring unexperienced....

    also try the Generic office in aventura....i've heard they have given deals to people with no cash......I don't know what Bright requires.....but Don seem s like an upfront guy on here...

    ...personally I would try entry level at a real trading firm.....
  8. What do you mean be "real trading firm"?
  9. Thanks...we in the industry have a real dilemma these days. The pricing structure is so low that we can't afford to gamble as much with new traders. We have always catered to the serious professional trader, and those who are open-minded enough to "do what it takes" to become successful.

    So many of the "sub-llc's" and the smaller firms have either gone away or been absorbed by firms like ours that it has become even more confusing to the newer traders.

    There really are no "jobs" anymore (since the bubble burst, when anyone could throw a dart and make some $$). The larger institutional firms don't really need "true" (discretionary) traders any more (heck, they can simply automate most of the basic decisions on where to put xxx amount of capital to use). For the most part, the market making firms are all gone (since they can't trade off of "order flow" of their own customers). The SOES bandits didn't last too long. The latest fad (liquidity trading) is going by the wayside as we speak. The ECN's are making big money under the guise of being the "best market".... (I have to admit, they are doing well, buying one another, trying to pick up more and more market share).

    The "prop shop" model (low or no cash from traders) is pretty much history since they cannot charge enough in fees to cover the losses from the poorer traders. I don't have to point out the tremendous number of "layoffs" in the last 24 months from (once) strong firms.

    We are lucky in that the model we chose came from a long standing example set by Clearing Firms on exchange trading floors. We try to cater to the entrepreneur, who, instead of wasting money buying a franchise, or going into business with his/her "brother in law" chooses to work towards a career in professional trading. This doesn't "cost" much, but does simply require the moving of capital from one bank account to another. Unfortunately, not everyone can simply put up nominal captial ($25K is the minimum as a "Pattern Day Trader" anyway)... just like most people can't pay cash for a car or a house. At least in the case of career trading, they aren't simply "spending" it.... they may "lose" it, if they aren't quick learners, but they aren't spending it.

    We took the additional step of not having a "wannabe) trader pay big bucks for exchange memberships (which, of course, the Clearing firm model requires) an attempt to facilitate the overall expansion of the marketplace.

    We simply do our best to provide low rate, solid financial stability, good training, and multiple arrangements that can be tailored to the successful person who wants to trade.

    (Sorry for what seems like an ad, but I've had so many calls and Emails lately from "fired" or "laid off" traders, I though it would make sense to go into a bit of detail here on the board).
  10. I appreciate your input Mr. Bright. I think you run a phenominal firm and absolutely value your expertise. I certainly agree that times are much different than, say, 4-5 years ago. I also realize that opportunities for the beginning active trader with low capital startup are not near as plentiful. Hopefully, with my background in the market, I will be able to find one that still exist. I realize that the lower my initial capital, the higher my commission and fees, but I am willing to accept that for a foot in the door. After all, it wasn't long ago that I was doing this and paying Ameritrade retail. I will continue to look and anyone that happens to know of a firm in Florida somewhere that requires little to no upfront capital, please let me know. I appreciate all your help and advice.
    #10     Oct 25, 2003