I just recently joined a prop firm whose clearing firm is centurion securities. I use ML's tradespeed and overall it seems like a good platform. I've been told that the prop has 200 traders total and about a quarter trade remote. I sent them 10 grand, but I need assurances. I'm really sort of naive about how prop shops work so I wanted to know if the money I send them is secure or if I have any real assurances. I used to trade at another prop shop for about 5 months, but I left because I couldn't handle the negative vibe and the desk fee was just too expensive. Anyway, are there any remote traders who can give me a head's up on anything they have learned through their experiences? Do you ever get a little weary of having only correspondence thru email, aim, and the telephone and not really knowing what's going on at the firm? Also, is there anything else that you would tell a new trader starting up remote?
Not boasting either. I just wanna know if there are REMOTE traders willing to give their 2 cents (no pun intended).
Our remote traders have a manager assigned to them, they listen to our Paltalk discussion prior to the opening each day, have monthly and quarterly reviews, come to free advanced training classes (at their convenience)....and have a direct Instant Message to managers, and even me if need be. There is a big difference between firms...and who is centurion securities? (I checked records, perhaps these guys?) ------------------------ NASD Member Firm CENTURION SECURITIES CORPORATION CRD Number 40405 SEC Number 8-049045 Applicant Name on Form BD CENTURION SECURITIES CORPORATION Prior Business Names CITADEL INVESTMENT SERVICES, INC. CITADEL SECURITIES CORPORATION Business Phone Number 636-390-2008 Main Office Located in NASD District: 4-Kansas City Main Office Address 319 LAFAYETTE ST. WASHINGTON, MO 63090 Mailing Address 319 LAFAYETTE ST. WASHINGTON, MO 63090 ------ Broker or dealer selling corporate debt securities Broker or dealer retailing corporate equity securities over-the-counter Government securities broker Mutual fund retailer Non-exchange member arranging for transactions in listed securities by exchange member Broker or dealer selling oil and gas interests Solicitor of time deposits in a financial institution Broker or dealer selling tax shelters or limited partnerships in primary distributions Broker or dealer selling variable life insurance or annuities -------- (Although this looks more like a retail sales firm)...? Just FYI... Good Luck, Don
If you are going to plug into a system, ensure you plug into one who has traders that are getting consistent results and those results are or can be duplicated by other traders. No one wants to reinvent the wheel, but you should kick the tires a few times to make sure it works. Doing a little homework can save you a lot of frustration down the road. I know centurion, I have an account with them, and while I only use it for swing trading purposes, they have never pressured me to trade volume, or charged some bogus fees for trading remote like some other firms. The way they calculate haircut is far superior to some of the other firms out there, It's a novel concept they actually charge for RISK, not for use of capital which is about as fair as it gets, and for many traders makes all the difference between making money or paying the house. Good luck! Mike
How do they calculate or asses risk and quantify it into a charge? Do you mean that they do not charge for capital use at all, but on the level of risk that they deem your leverage to be used at? Is there any cap to this?
check out this thread, http://elitetrader.com/vb/showthread.php?s=&threaded=56365 also consider these factors: SEC PDT Rule of 4:1 offers significant competition to the supposed 10:1 capital leverage that the prop firms claim to offer. most traders do not qualify or get authorized to trade 10x their capital contribution, but are told that they have access, and then strongly told not to use that leverage because of risk management considerations.... Retail customer accounts now have access to the same direct access software and speed trading that these proprietary firms used to have almost exclusively, so the edge has been reduced there too... Retail customer accounts have the protections afforded them of retail accounts instead of the worries you described regarding having your account balances both at risk and in jeopardy of not being returned.....becoming a licensed broker sacrifices those protections afforded customer accounts, hence you become both a stooge of the firm's unstated high-volume churn commission structure as well as risk of embezzlement of your funds by unscrupped firm managers.... On a personal note, I wish the very best from Bruno, Guido and his buddies to Gary Mednick, who walked away with hundreds of thousands of prop traders monied accounts...Give him my regards guys....