Hello all, I've been trading for over 10 years, including 2 professionally with a rather well known firm in the downtown Chicago area (I'd rather not get into the specifics), but I'm currently entertaining the idea of making a transfer to another shop here in town. However, I'm not familiar with the other shops and I don't really know where to begin. There are so many options out there and a seemingly endless array of potential questions that need to be answered before such a transition is made that I was hoping that someone on this board would be able to provide some insight from their experiences. Anyone able/willing to help direct me down the right path? Many thanks, - Jon
Forgot to mention that my primary trading vehicle is equities. I also tend to nibble on options and e-mini futures from time-to-time, but I'm generally trading either individual stocks or index-based ETFs or sectors the majority of the time. Thanks again
I've traded with both Echotrade and Vtrader and have no problem recommending them. I believe both still have offices in Chicago. I'm currently with Echo, remote. No complaints. Good luck.
We've had an office above the CBOE for 20 years. PM if you have an interest in meeting with the manager. Don
Don do you guys offer training for beginners? and is there a salary when you first start or do you just pay based on performance?
No, our traders are not employees, all independent, keep 100% of their trading profits. First New York Securities would be my suggestion. Don
One thing everyone should be aware of! Most of the prop firms requiring capital contribution and emphasizing 100 % payout should be avoided. Firms requiring capital contribution fully transferring risk to the trader therefore they are financially not interested in the traders success ( no matter how nice people they are and promising the best training) . It is just their business model. So 100 % payout firms should be avoided.( Exceptions: wealthy traders with unlimited resources, who can ensure their growth by financing their large losses). By choosing a prop firm with lower payout (70-80%) WITH NO CAPITAL CONRIBUTION! is a better choice. The firm is interested in the tradersâ advancement. The same time the trader will be able to incur larger capital drawdowns due to the firm stronger business model, which is key for generating larger profits! Anyway by foregoing the 20 % payout difference the trader will be able to receive much higher leverage and practically will be able to make more money than ever than at a 100% payout âplacesâ. Yes, FNYS is an excellent choice. Very hard to get in. Keep sending your resume every month and attach impressive cover letters emphasizing your commitment to become a serious trader. You have to be aggressive. Sooner or later HR will get use to see your name and one day they will give you a chance for an interview. The interviewing process will be challenging, but once you in you will learn about real trading. You will be on the right path and later when you get older , you donât have to have a nurse standing behind you ready to apply electrical cardioversion when you do your OPGâs.
Actually, we've had this discussion several times over the last few years on ET. The idea of putting up no money, and having a firm keep a percentage of your profits, is a valid one. To show how my brother and I feel about it, after decades of being in the business, both as trader/members and as a firm, come down to this. For example. If you are putting up zero, but making $10,000 per month (after paying your firm for commissions and other costs), and giving up, say 30% of your profits, you are essentially giving up $36,000 per year....and, if you are not making money, you will obviously be let go very quickly. Now, if you were to put up $20K, and keep 100% of your trading profits, you have the independence of a business owner, and, again, obviously, keep 100% of your profits. Now, take this one step further, say you make $500,000, do you really want to give up $150,000 in lieu of putting up something liek $20K? Of course not. As in any business venture, different business plans apply to different people. The days of someone paying you to risk their money are pretty much long gone, and if you were to analyze those old business models, you would see that there were always other costs involved. Think about it, would you allow a friend of yours to simply risk your money with no downside risk to them...and all to you...on an unproven trader? We've tried all diffferent models, and have found that those willing to risk a little $$, as well as their time, are much more likely to succeed in this business, or any other business. But, when it is all said and done...do your due diligence, and find the fit that works well for you... All the best, Don
Don, I have two quick questions for you regarding funding, first what is the ideal amount a new trader would need to fund his/her account with to get started with you guys, 2nd how much would a trader need to have in his/her account to trade with $1M?