Second Prop Account

Discussion in 'Professional Trading' started by browna3, Apr 14, 2008.

  1. browna3


    Does anyone know of an excellent propietary trading firm that will allow you to open an account with them regarless of whether you have an existing prop account with another company?

    I looked into EchoTrade, but they don't allow you to have an existing prop account. They seem to have a pretty good operation going on though.

    My reasons for adding a second account are primarily for hedging connection issues as well as transition from my current firm to another with a better total package (software platform, stock locating, reliability, commissions, additional fees, etc.).

    I'm currently with Assent. My major concerns are stock locating costs, technical reliability, and commissions.


  2. What used to happen in 2000 before Prop firms asked traders to put up deposits. A trader would have an account at one firm and an account at another. He would go long an earnings play stock in one account and go short the stock in his account at the other firm. Blowing up his account at one firm and making a bunch of money in his account at another firm. Even with deposits I am sure you could make enough off of GOOG earnings to make up for the loss of your deposit at the other firm.
  3. not sure what firm will want this type of situation, at least not without a healthy deposit. That is merely an opinion on my part. No firm will want to be on the hook if someone were to trade against themself in the two accounts and incur a big loss on one side and profit in the other.

    Obviously it would be stupid for a trader to try that and think that they will gain, but I think firms are wary of dual registrations for this and other reasons.

    What about using IB or another retail firm as a backup?
  4. If you want to switch from Assent to Echo, get a Demo login from Sterling trader, play with the software in your spare time and get familiar with it and create a layout. Then Switch from Assent to Echo, you should have only about 3-4 days of down time during the switch.