Providing leverage and 100% payout is not a scam. Advising newbies to take their $1,500 learning seminar is a scam. Don't confuse prop firms which are no more than arcades. Plenty of prop firms hire new traders where they have zero financial risk. Plenty of prop firms also pay base salaries (FirstNY).
Yes... arcades are brokers that provide leverage and usually a better platform than IB. What's the evil in that? That's the only way 100% payout places make money. But arcades are not "real" prop firms.
Of course not. They make their money from commissions. So what. Unlike margin requirements virtually all other markets, stock and bond trading is hobled by very low leverage. The prop. firm allows you to trade with similar leverage that you get in futrures and other markets. I make my living trading, and most of the money that I have made over the past 9 years has come from trading. I could not do many of my best strategies at a retail brokerage firm. You seem to have an ax to grind, but the prop. business model works for many of us. If you do not like it, get a job or trade retail.
Ok when you say make money are we talking 100k a year average ? Why not trade futures, you get margin on margin if you get that ? What edge do you have, can you leverage it, whats keeping you from making millions, equities are very scalable, if you can make 1500 a day consistent you can make 10k a day too.... very scalable.. Thanks
With these questions you have a LOT of research to do before writing any articles. -Many guys make 6-figs year-in-year-out myself included. In volatile markets 7 figures is not uncommon for some. -Just because someone is a good trader does not mean you can trade any instrument. -Most profitable traders will not reveal their edge...why would they? And equities are not as scalable as you think.
I don't talk income on an open forum but I support a family of 4. Some strategies are scalable some are not. Why limit yourself to futures? I look for an edge..... any place I can find it.
However, making seven figures with 20mm AUM is not uncommon. I think the issues here are what you define as prop and what you define as trading etc; Lots and lots of these places cut and run when you lose 5k, further they churn these kids for bro.
That is very good. So you must be one in tens of thousands doing this. Unless your trading millions of doallrs, thats another game completley. Different rules and syle than trading 50k account or less..... much.