After following the thread "Worldco R.I.P. 1993-2003 ?" I have come to figure out that in order for prop trading to work in futures, management needs to actually develop traders into traders instead of developing commission generators.
Exactly! Choose profitable traders. The key is to offer them a deal that they cannot refuse. Recruiting would take on a different meaning. You recruit the elite not the wannabees.
Everyone here seems to think that their is paradise on the prop futures trading side. Well I am here to say that is a bunch of B.S. How do I know? I work for one. These firms or a least the one I work for is making the majority of their money on commissions. All the traders at these prop futures firm turn lots of contracts a day anywhere from 1000-10,000 a 10-60c markup over exchange member fees adds of big at the end of the year!
It seems that some of the firms promote or have the culture of scalping the futures, especially the euro stuff. There seem to be a lot of ex nasdaq scalpers in these firms. However there are some others that have a culture of making a few good trades a day too. Like anything there are some traders that make the big money, the ok money, and some make no money. It is just like any other trading firm. However from what I have seen and heard the odds on making money seem to be better for those making the change, however you might be having a different experience at your firm or seeing different results from other traders then I have heard about.
Could you list a few names of firms i contact? If not specifically yours, maybe some others that you know of? Thanks.
u know what. lemme be real with you. 1) you dont need more leverage in futures than you get retail. 2) you dont need lower commissions unless you are a crazy tons of volume scalper but then again it'd be better to just get a globex terminal in that case. 3) no dont think you'll join a firm and they'll teach you how to trade well. they won't. i hope you stop discussing this stupid topic already.
1)True, there are no benefits to prop futures in terms of âleverageâ, but you will be able to trade much bigger size .Do you have enough $$ to scalp 50 or 150 lots? 2) You are absolutely wrong on this issue. The majority of prop traders at futures firms are spreaders. Commissions make a huge difference carefully read what I wrote: 1000-10,000+ R/T a day. The difference between members rates and retail rates on these numbers is huge can be as much as 20K. Donât tell me commissions are not important, a small difference of 10 cents can add up 250k a year. 3)A firm might be able to teach you how to trade, weather you will be profitable or not is another story. People have misconception about prop futures trading, my advice is look at how locals trade in the pits, that what it is, but on the screen. Furthermore people have PM me to give me names of firms etcâ¦, search these boards, that is how I found out about the competition. Finally I you are thinking about signing on with a prop futures group make sure that commission cost are strictly outlined and so are the % of profits you get to take home, (you might be laughing but some of the bigger firms screw their traders by not outlying these issues).
If you read carefully, you'd note what I said about Globex. If you do 1000-10000RT per day, a GLOBEX terminal will beat anything prop firms can offer and you don't have to split s* with anyone.