Retail vs Prop

Discussion in 'Professional Trading' started by webbma, Dec 5, 2007.

  1. webbma


    Here is a little background. I've been trading for 15+ years. First 8 1/2 at Goldman Sachs, next 4 at UBS then smaller shop. I've been tossing around the idea of doing it on my own now. In your opinions what are the advantages of doing it retail vs going with a prop shop. -tks.
  2. Most prop firms actually are just retail firms that are disguised. So there is not much difference to me.:)
  3. webbma


    is there a difference in service, rates, payouts etc...
  4. rjv27


    the main difference is leverage. you only get 4:1 intraday with a retail account. prop is more.
  5. webbma


    so are you saying that if 4:1 leverage on the money I want to use is enough then I should go retail not prop?
  6. EricP


    Yes, I would certainly agree with that statement. No doubt about it.
  7. webbma


    eric....why would you agree with that? sorry, not trying to challenge anyone just trying to understand the differences.

  8. Like the other poster said, there really isn't much of a difference between what most consider "prop" vs. retail anymore (a lot of "prop" firms are just large retail accounts). The leverage is one, being in an office surrounded by other traders is another. Most prop firms have on-sight tech support, and many have access to programmers if that's something you're looking for. A lot of prop firms offer training, but it often isn't very good and it doesn't sound like you're looking for that with your experience. Prop does require a series 7 (and other licenses) in most cases.

    If you don't need most of these things, retail is probably the way to go. If you do, maybe prop is the way to go.

    Of course, with technology, you could always "talk" with other traders without being in the same room. Rates really aren't much different anymore, data fees are somewhat higher for licensed "professional" traders, but that shouldn't be too much of a factor if you're successful.

    Hope this helps.
  9. webbma


    that does help...that is the kind of thing I am looking for. Any other opinions people have I'd love to hear them. tks.
  10. If you have been trading for GS, USB, and others, why do you want to go on your own? Most successful traders will go the hedge fund path instead of trading retail or prop. We need to know your purpose before we give you any suggestion.
    #10     Dec 5, 2007