Pro's and cons futures vs. retail equities vs. prop equities

Discussion in 'Professional Trading' started by r-in, Jan 14, 2009.

  1. r-in


    Anyone feel there is a definitive advantage to trading futures, retail equities, or prop equities?
    Futures and prop equities: Leverage available and perhaps tax benefits, but not sure that prop taxation is better than the futures side.
    Prop maybe able to get cheaper rates than retail equities, but you also end up with exchange data fees that are huge. Also fees to join exchange.
    Futures with volume rates can be very good and probably comparable to prop equity. Data fees minimal compared to prop, but again no exchange fees unless you chose to buy or lease a seat.
    Prop equity may offer some access to programmers to automate and closer access to very good traders and their ideas.
    Sorry for the somewhat free flow format to this point. Anyone who has recently done a table/spreadsheet of plus minuses please feel free to post. Kind of debating a change back to equities, but not sure it's worth the hoop jumping for prop(licensing, etc.). Or worth the loss of leverage available with futures. At the same time I don't go out on a limb with my leverage. For me 1 contract for $10,000, 2 at $15,000, 3 at $20,000, then I only add 1 per $10,000 after this and I rarely keep more than $40,000 in my account at a time.
  2. r-in


    Figured I'd try one bump. Anybody done the comparison?