The only requirements for most prop shops are around $5,000 deposit and a face (and the face is optional). As long as your putting down money most will give you a seat no problem.
Hey, don't be cruel... You didn't get the point (or I put it across badly). It's not that I really care what they name them. It's the attitude. I'm just pointing out the pervasive "holier than thou" stance that peppers many of the threads on ET. I simply don't see what annoints retail brokerage customers as superior to the "arcade" types. What makes them "Elite", so to speak
I agree. Its a different concept. Its funny that not everyone is trying to classify all firms as "arcades".
I own and run a prop firm. When the term is used wrong, I find that it confuses people. It is a lot like calling a janitor a sanitation engineer and then thinking that all engineers are also janitors. Although I have to admit that during my first year of trading, I would have made a lot more money as a sanitation engineer than with my engineering degree.
After much mental labor (most of it reading posts) I conclude these definitions related to trading: 1. Proprietary: A firm hires a trader, the trader trades the firm's capital with no risk deposit. The firm keeps a percentage of the trader's profit, but beforehand typically trains the trader in a firmwide methodology. The firm generally expects the trader to stay with that methodology. The firm can profit on markups in areas suchs as commission, fees, ets. . 2. Professional: A firm takes a trader's risk deposit, and the trader trades his method. The firm makes money from commissions and software fees. So a guy with $5K can trade various leverage levels like 10:1, 30:1, 100:1 in equities. These firms that offer higher leverage justify the risk because they will make more commission dollars. Occasionally, a bad trader blows them out. 3. Arcade: so far it it seems and English (British) word that is similar in equities to professional firm. Now I learned that it refers to futures shops as well. When I read news articles on traders from Europe, the word Arcade used a lot.
i would agree with you for the most part. but in equities in the US..the term prop is used frequently for firms that take deposits. it may not be technically correct..but that is what you will hear in the real world. arcade is a euro term that wasn't heard here until the past few yrs.
#3 -- pretty easy -- just come with money in hand, and as long as it lasts you're welcome.... don't expect to make money on your principal though, applying the techniques taught will generally not earn you money... prepare to carry yourself longer than expected and get some techniques on your own, or of your own.... words from many traders who have succeeded inspite of the risks inherent in these open doors..