No commissions?

Discussion in 'Prop Firms' started by Bachelier, Jan 24, 2002.

  1. Hi all,

    Do any of you know of prop firms who charge employees no commissions, just the ecn and supersoes/selectnet fees?

    And to pay for office expenses with a lower payout instead?

    Please be specific on payout ratios etc.


  2. Speculator1929

    Speculator1929 Guest

    Check Schonfeld. I hear they pay 20% of your gross. Goldman Sachs pays its traders about 30% of gross as do most of the big I-Banks.
  3. True... a reasonable trader at an I-Bank will gross around $5million, so that works out about right ($1.5million for the trader, or 30% of gross)
  4. Interesting..

    So does this mean GS actually employs proprietary traders who trade for capital gain instead mainly fill orders (as I thought was mainly the case)?
  5. I find it rather interesting that something like, "$5 million made by trading as GS, and you get to keep 30%" ....was said so casually. First off, those days are long gone, mid 1990's when the bigger firms were paying anyone that kind of money (except for the bigger partners). Their "traders" generally move money around, and are very limited as to what they can and cannot do. This can be a great job for many people...but not necessarily a great job for those who want to control their destiny. Massive layoffs have taken place in this part of the game over the last couple of years. Even the "employer type" trading firms have cut back a major percentage of their prop traders.

    If you really think you can make $5 Mil (or even $1mil), wouldn't you prefer to keep all of it?

    Just my thoughts...