Nothing wrong with asking for $2500 or less at a prop firm. After reading this thread you'd be a fool to keep more at a prop firm: http://www.elitetrader.com/vb/showthread.php?threadid=181202 Start small. If you're good and they actually pay you then put more. Too many thieves out there today. Check out the thread above, stay away from anything with the word Velez in it until after reading it. Still a lot of people trying to find their money after his last venture.
With $2,500 you could have one bad day and blow out before you even learn the software. A lot of the (in my opinion) more stable firms out there are not interested in anything less than $50k capital from guys who trade remote and don't need any office space. $2,500 is a very small amount to put down and even at $50k BP (20:1) its going to be hard to make a few hundred a day but very easy to loose the same or more.
You should never be in a position to risk all your risk deposit on one trade. The idea is start small until you know the software and, more importantly, know the integrity of the prop firm. If they can show you they will pay you, then yes, put more money in so you get the buying power you need to make a living. I'm not saying don't have more on deposit, but until you know a firm is honest it's too easy to get burned. You should only keep the minimum amount on deposit that you need to get the buying power you want. But you never know a new prop firm is honest enough until you actually get a check. Read my earlier link and look up all the independent traders whose accounts suddenly turned up missing with Velez.
agreed. I wonder much about firms that require little down from trader wannabes. I suspect it is mostly made up by higher fees and other charges ("education", etc.).
You guys are missing the point. If you are trying out a new prop firm it's just due diligence to check it out first. And the only test is to see if they send you a check when you ask for one. Especially after what's happened to Velez Capital/ Team Trading where all the independent accounts just disappeared/stolen, you would be foolish to leave more as a risk deposit than the bare minimum until you could trust your prop firm. Even if you had only $2500 and 10 to 1 buying power, you could still do a 1000 share trade on stocks $25/share and less, 2000 share trades on $12.50/share and less. If you can average 25 cents a day net, that's $5000 per month which can get you by until you know your firm will actually pay you. Check out the link I posted to the other thread where traders had huge amounts stolen by their prop firm and tell me due diligence is not in order? And who would be silly enough to throw their entire risk deposit on a trade without knowing the software?
If you trade at a decent shop - Assent, Echo... I don't know many others - perhaps Dimension proper (not LLCs) there should be no issue. Whatever BD you go to should be able to open up the books and show you their account at their Prime Broker. Anyone who can't show you has something to hide. no need to waste $2,500 on a gamble/lockup, etc. just know where you are going before you go there.
When you mention Dimension proper, is that Dimension Trading? Also, do you know anything about Broad St Trading?
Look at AMR Capital. Those guys are solid. Been around since '99, clear through Goldman and don't require money up. I've been with them for 4 years and very happy. Value add type of place and they still have the Insight / Whisper software.
U can take a look at benchmarq trading partners they are a broker dealer Make sure u don,t join a LLC it is very risk