Rent an office or trade from home?

I've done both and currently looking for a place to go back to a office space to rent (lease) with a few other traders I personally know.

Everybody is in a different situation and you didn't mention any thing about yourself personally that would result in you choosing one over the other work location.

For example, I've done the apartment work space for many years when I first started trading. Then I moved into a warehouse office space with other traders due to a need to communicate in person with other traders looking for an office space and to hold myself more accountable for my trading.

After that, I moved to another country and bought a home...then later remodeled the basement into a very large office. That was very suitable at the time especially due to the fact I had a family and a stay at home mom. I'm a strong believer in both parents raising the kids (not day care) and I was able to do that until the spouse became very sick with cancer.

Kids now nearing teenage years, spouse and I split up. Now I'm living in my other home and trading from my home. Currently, I'm looking for an office space again with other traders I personally know but nearer to my kids school...close enough that they can come to my office for lunch or that I can work a little late while waiting for them to finish their after school sport activities.

Both situations (home office vs. renting office space) suitable.

I will suggest to not turn your home or part of your home into a home office space workplace for "other traders" unless you can afford to buy another home and then use the other home as the place you actually live at...many small business owners in my area do such (e.g. accountants, lawyers, architects, secretary temp agency). I say this because you'll lose too much privacy when sharing a home you actually live in with other traders that use it only during work hours especially if you have a family.

I got that ideal about buying two homes and then converting the other home entirely into a home office when I lived in Seattle as a trader sharing an office space (warehouse) with other traders near the old Kingdom sports arena. I would notice some of the nearby residential neighborhoods would buy a home and then convert it into an office. It was a great tax deduction and sharing the home with other traders...it almost paid for itself.

Yet, these days, those that trade and talk about a home office...they're really just talking about converting a room, basement or attic into a home office for one trader instead converting an entire home into a office for several traders. The latter implies you'll be paying the entire mortgage while other traders pay you a fee to use your home as an office.

The other situation is an actual office place in a building. You'll most likely be splitting the rent (lease) with other traders along with hiring a secretary. I did this in that warehouse mentioned earlier. There were 7 of us traders that quickly became just 5 after two quickly blewup their capital. The rest of us stuck together for many years until things changed in our personal lives. For example, one had to move to another state to take care of his elderly parents. I myself met a girl and we then moved to another country and so on. Yet, I do stay in close contacts with my old personal trading buddies via here at EliteTrader.com and a chat room.

There's another option call "coworking spaces" you may want to consider. Every major city has them and they're cool. I used one on and off for the first 6 months of last year when my home was being remodeled. Too noisy to work at home with all the construction. Thus, I used a "coworking space" during that time.

Why am I looking for an office space now ?

Kids are older, my need to be nearer to their school, never felt comfortable in inviting other traders into the home I actually live in for any reason, I have a few trading pals I can split an office lease and trade together, health changed dramatically late last year and I'm still recovering...I just want to get back to that "fun with laughter" I had like the days when I leased that warehouse space with other traders in Seattle.

My home is my home...its my oasis. I now want to separate the basement office from it and move back into a real office. Worst come to worst, if I can't find a suitable office space...I'll just buy another home and completely convert it into a place for traders.

P.S. Communication is much better in an office space with other traders than working from home and using a chat room.

 

I sort'uv agree but only if that family is there during trading hours. If they're not there during trading hours...they shouldn't be concerned unless the home office is taking away a needed part of the home. For example, turning the kids play room into a home office or turning the spouse painting room into a home office or putting the home office next to the bedroom or turning the room you promise the spouse will be used for something else you had previously agreed on.

 

I lean towards renting a space (or coworking space). Separation between work and home tends to carry great benefits. Also, if a trade is scalable, then there is a possibility that you'll need to speak with banks, service providers, and eventually interview employees. The home is not ideal for any of these things.

 

Exactly.

I trade from home. Has a lot of advantages:

1. no extra cost of rent to pay
2. I am in my favorite environment, not isolated on an island, gives better feeling
   
3. my partner knows that if I say "busy" she will not disturb me
4. if I want to stop trading I am at the same time already home, not losing time driving home
5. I can check every now and then the market and still jump in a trade while being home

And biggest advantage according to my partner: I can cook, wash, clean... as I am always home

 

Lease a ferrari with your office rent money.

Renting a full time office is just stupid unless u need to meet with clients constantly or have more than a few employees.

 

I should add that if trade profits tend to be more volatile, then it might be better to stick with an at home office. Most of the market making/HFT shops with 1-5 people that I know keep small offices but the cost is a fraction of their monthly infrastructure costs.

 

I never heard of a market making/HFT office with only 1 - 5 people. Aren't they much larger with personnel besides just traders and aren't they typically in a commercial office space ?

I think most here in this thread are talking about a group of retail traders getting together and questioning about using a commercial office instead of a home office. Thus, in comparison, the typical retail trader tends to be residential (at home) or some trying to trade at work while having a job.

 

Instead of leasing a Ferrari... I just say Buy a used/older with some miles early 2000's Porsche 911. This car year/model is a relative bargain/steal for what it use to be and its competitors in its class then and now.
You can have an exotic, or semi-exotic, for around as low as only $15K

But I agree, with the home office thingy...why on earth would a retail trader...want to pay for an office space lease?
That's the benefit of being a retail trader...you can do it anywhere -- you're the lone wolf Zorro trader. ...not bound up or tied to anywhere.

I was under the impression All people wanted to ditch or leave the office/cubicle bland drab environment, if they truly didn't need to be there,

Or if you just want or need to escape from home...find a quiet desk corner in a public library -- and use that as your temporary/daily work office trader environment.

 

When a divorce is too expensive renting an office might be a good solution.

 

Put a small fridge in the office and get a tent cot for the office for emergency sleep overs.

You're good to go.