Prop Trading

Discussion in 'Prop Firms' started by dsch11, Jan 14, 2012.

  1. dsch11



    I am in need of information on prop trading/shops and i have tried to find this elsewhere but i can't, so i decided to make a thread.

    I live in Sweden and I'm interested in remote prop trading and would like to know what my choices are. I am mostly interested in stocks.
    Can i trade with a US firm or is this not possible since I'm not a US citizen? Which firms can i look for?

    There are some firms that does not require you to deposit anything at all, but those who do, is it as a "safety" to show that I'm serious? Or is it a payment?

    There aren't any "desk fees" when trading with profit sharing? At least they are covered in profits and if i don't make money i guess i wont be trading for the firm very long..

    When it comes to tax payment I'm guessing i make the declaration myself?

    I hope someone has the time and energy to help me, thanks.

  2. If you're in sweden, you can't join a us firm but you can join an international group. There isn't the same oversight over capital, so it's risky. Many US firms have overseas counterparts. Here are some better known firms that have been around for US equities. There is no licensing or what not. If you have a proven track records, some firms may be willing to take risk on you, but those are few and far in between, especially for international clients because it's much more difficult to enforce contracts.

    Here's a general description of fees for these firms (I have a relative overseas that trades through one of these international groups)

    Most will require a deposit and provide 10:1-20:1 leverage on 5-10k deposits. The fees shouldn't be more than .004-.005 for low volume. Platform fees range from 200-300 a month which includes data from NYSE, AMEX, NASDAQ, and ARCA. Options go for about a buck a pop or lower with volume.

    Nevis Trading
    TM Global Capital
    BSI Prop Trading
    WTS (In canada, not the US b/D)

    There are many others, but that's a good place to start I believe. I'm not endorsing any of these groups. I'm just aware that they have been around for a while.
  3. MBC


    20k for 1mm

    How about put up 2k for 100k buying power, trade futures, with futures you get leverage about 10:1 intraday easy...

    No need to put up 20k, prove out strategy with 2k, or are you looking for people to "churn" shares so your organization gets paid, yes?

    See the disconnect, a trader should have no interest in volume, while you do..... makes no sense, why your firm trolls for new "hires"
  4. Of course. His business is off the amount of shared traded. That's no secret and nobody is hiding that. That is how many trading firms are structured. The same way a bank makes money off your transactions, not off how much you save and they prefer you make a lot of transactions than save a lot and make few transactions. Basic logic dictates that.

    I think Bright provides 20:1 intraday. If not, many firms do. They risk the capital on that. As Don will confirm, It's very easy for a trader to be short in a stock that's halted at 10:1+ and next thing you know the stock jumps up 100% after FDA approval. The firm is always at risk providing leverage. If the capital is lost, the firm has to come up with it.

    If Bright claimed he made off the 20% profit split and not commissions, that would be cause for alarm; however, he's been very clear that Goldman enforces this rule.
  5. MBC


    And please with the "envelope" stategies that "require" buying power, its over.

    Only envelops you should be doing is, write yourself a letter go to the next town over and drop it in the mail and when it gets to you read it. That way you can amuse yourself instead of this "traing" crap.
  6. MBC


    Yep, he is a broker. Pretty nice business........

    but they offer "traing" for a "fee" plus desk fee's, connection fee, usage fee see a trend.

    Its BS, much better off learning yourself wiht 2k
  7. To each his own, but there is inherent value in learning from someone who has been around for so many years and has kept their reputation top notch. For many (including myself sometimes) paying for a course on a topic I choose is seen as continuing education. If somebody is successful at something (and Bright can demonstrate they are extremely successful traders), what makes you think they would just give away information for free? it took them years and years to learn what they know and the $1000 fee for ET members is actually a good deal that I PMd Bright about. 1k for a good pairs trading class definitely is a bargain. Especially compared to the other crap firms offer for 5-10k
  8. MBC


    I hear you. Although disagree with "training" costs...

    He seems like a nice guy, maybe a great broker... but trading, not sure. They keep all sorts of recors about openings and pairs, yet shouldnt they know how many people come in and "not make it" exactly and how much they lose...... this is what should be FULL DISCLOSURE o nthe "training" web site....
  9. MBC


    Maybe you should ask green light capital and David E. about some "training" they seem to be a success to :)

    Ok, thats enough... just bored I guess. Just looking for real information is so hard to come by and these people potray "selling" it, isnt accurate I think IMO
    Have a good evening
    #10     Jan 15, 2012