I am a recent graduate in business with little or no prior exp in trading. I have never traded any account in my life. I wanted to break into trading world. But the market is hard and I don't think I will get a break in IB. Prop Shops seems to be a good place were I can learn and trade for living( may not be enough $$$$ to make a simple living). I was shopping around and got a offer from a Prop Firm in NYC ( I don't want to name them, they are mentioned in this site many times). Just wondering the offer they gave is it good enough. I am asking all the Prop traders to take a look and advice. I will be happy if I don't make any money ($ for shelter,food and clothes is good). Cost of Training $1,000.00 Minimal Capital Contribution $2,500.00 Registration Fees $876.00 $4,376.00 Per Share Rate 0.004 plus/minus exchange fees Payout 75% (2years or $200,000 gross) Monthly Share Requirement 250,000 Software/Desk Fee $- Keep in mind that I don't have any prior exp in trading. This is a just thought/question. If the offer is pretty good should I take it or try for big prop firms ( not looking for a monthly salary). Like Jane Street, g1,peak6,SIG,wolv ( i saw there websites and they are mostly interested in Ivy students) just few off the mind. Can you please name a few good names ( where I can learn) in prop where i can contribute 5K for capital, training, reg and get in. I am naive to this Prop world and advice me. Thank You CaliBoy
Unfortunately this is pretty bad deal. You have to pay $4,300 to start trading... no way. I would NEVER pay for training. That is in the firm's interest, not yours. If they wanted you to be profitable, they wouldn't ask for a training fee. Also, what the hell is with the registration? That is bullsh!t. The .004 commission fee is okay, but trading 250,000 shares for a new trader is ridiculous. The pay out of 75% is also very bad. Overall, I would certainly refuse this deal. I see you mentioned First NY and other reputable firms... yes they like Ivy's and sometimes MBAs but try to apply anyway. With enough research, I am sure you can find a firm that does not require initial capital.. you may have to be willing to relocate elsewhere than NY. If you can afford $5,000 initial capital (considering your $4,300 plus 250,000 monthly shares will be much higher than $5,000 if you are negative in one month) I recommend looking into places like Trillium or Schonfeld firms. There you would actually trade alongside very legit traders in the business and learn from them. PM if you have any questions. I traded for a prop firm from June 08 - March 09, and will start at another firm by July. I never had to put down a initial contribution, or had any financial risk whatsoever. Good luck.
i find this on craigslist, i dont know if they charge for training or not but it says they offer leverage http://southjersey.craigslist.org/acc/1204283827.html
Monty, Could you PM me the names of firms you were/are with and recommend? If you could give me their initial bp, rates/fees, requirements, etc etc, I'd appreciate it also. Thanks.
Almost every prop firm provides leverage (equities). Saw that this was an options firm, so not 100% sure. Never pay for training though!
http://www.tradersnarrative.com/list-of-proprietary-trading-firms-735.html partial list of some prop firms, first understand the difference between proprietary firms (you trade their capital, no cost to you). This is a true prop firm like Gelber. If you pay or deposit money into a prop firm you are usually a subcontractor and are given a 1099 at the end of the year. You are able to trade until you lose your dough. Nothing wrong with a or b but know that in the second case, you have to know who you are dealing with or you can be taken advantage of; I will let you figure out why. The commisions, training issues have been discussed at length in other prop threads, use the search button. read some books and get a demo trading acount, learn your platform backwards. Good luck.
That is a great link. Another one, although with less information is: http://tracereed.com/ As a general rule, pursue NYC firms if you want to trade equities. For future and market making in options, I would pursue Chicago firms. Chicago also has some equities too. My opinion is that Chicago has more legit firms. Some of these provide a small base salary and they usually don't require a initial contribution. They also provide more training programs to new traders (not quality necessarily but quantity). The drawback to Chicago is that they desire more qualified candidates, meaning that a background in computer programming and/or quantitative finance is greatly prefered.