I've been at both... it's much cheaper when you don't know wtf you're doing if you go with a prop firm. This is good when you're fresh out of school and have no money to speak of. The only caveat is that you have to abide by their trading style rather than your own, so you can't learn quite as quickly. The other method will learn you faster, but will be much, much more expensive.
I'm going to be starting at a prop firm because I don't have the funds to trade with IB. I've been day-trading a small retail account for about a year and I am only able to break even after paying commissions. At this prop firm there are no commissions, only ECN fees/rebates and I trade their capital at 50/50. If I am able to earn nearly 10% on my tiny retail account, then I should be able to earn at least 5%/month at a prop firm - technically I should be able to earn around 10%. If they provide 200k BP, which they tell me they can, then it makes plenty of sense for me to have made this decision, no? At 50/50 it seems entirely feasible for me to earn more than the total of my retail account each month. I have trouble believing it myself. I would like to ask: is 5% per month an unreasonable goal for a prop trader? (This is of course a goal I don't expect to reach for some time). What do semi-successful prop traders make percentage-wise on their BP per month?
yeah i am in this dilema as well. Right now I am making a living....but i didn't get in this bizz to make a living. I want more or I may as well get a corporate job and put my feet up for the next 10 years....
yes it is but like all businesses you aren't going to make 5% EVERY month. Anywhere from -4% to +8% happen with me....but 5% on AVERAGE is doable., do not listen to the Bse'ers who tel lyou they have the Holy Grail and make 30%+ per month.....BLOW UP! ----------------------------------------------- I would like to ask: is 5% per month an unreasonable goal for a prop trader? (This is of course a goal I don't expect to reach for some time). What do semi-successful prop traders make percentage-wise on their BP per month?
i think there is some misunderstandings in this whole thread. basically the general consensus is to go to a prop firm, learn and make ur own capital. then go out and make it on your own. because it won't matter whether ur using firm money or your own money if u basically stink at what u do. prop firms give u the practice and guidance u won't get. because then again we are generally talking about people who wanna START trading. if ur really that crazily awesome the trading for prop firms won't be that attractive anymore. basically i see everyone's point but u guys are arguing from different perspective on the competency of the trader
prop trading the futures and cash markets are totally different. here in Chicago most futures firms give you 50% to start which is the norm but you would not be able to trade the size you do on your own. Trading 50 lots plus at futures firms who take 50% to start with then the more you make take less is a good living IF YOU ARE GOOD AT IT. Some guys I used to trade with made 200K+ a month trading for a firm, taking home 60% of that is a damn good living. So it all depends on the product you are trading and the cost structure. Some people in Chicago pay 10K a month desk fees some people pay 2K. It all boils down to what you are trading and the costs associated with it. Of course most people want to trade their own account so most people here go to work for a prop firm learn on their money then go out on their own. I would not start trading my own account unless I had 250K minimum to account to for draw down months.