I'm just out of college and I just had an interview with Generic. They offered me a 65% payout for a $2500 deposit and 1.8 cents/share commission. I've never worked for a prop firm before, so advice would be MUCH appreciated. Does anyone here work for this firm or know anything about their reputation? Thanks everyone in advance.
Generic is a good firm but you could get a better deal at Worldco like 85% payout and 1.3 cents a share commission. Shop around and compare deals. There are a lot of traders at generic who were former Worldco traders. But if you can try to get into schonfeld securities because there training program is a lot better. One thing about Worldco is if you burn through your deposit they will still back you. I don't know about Generic but include in your deal a mentor its very important in order for you to succeed in this business.
1.8 cents sounds pretty high...and ask them what the $2500 deposit is for...the reason i say that is because I "interviewed" with All-Tech a year ago...and they wanted that also, thing was if you lose that , you're done, unless you replenish it. So they are taking NO risk at all, don't let them bullsh*t you about letting you use their money, 'cause they'll probably only let you trade 100 share lots another words, you're not an employee, you're a customer no matter which way they try to fake that personally i might check worldco and some others , get the best price per share with smallest contribution, biggest payout(65% is an insult if you ask me)..learn the ropes, if you like it then scrape together a stake and check out a pro shop like echo or bright or leiber weissman and get 100% payout and pay less than a penny per share. Good luck.
Try these two places http://www.schonfeldsecurities.com/ and http://www.worldcollc.com/Job.htm with Worldco you need to take a tour and talk to Walter after the tour. He is the one who makes the deals and if he see's any promise in you he will make you the best offer anyone can make.
Thanks everyone for the responses. The payout percentage isn't my only consideration. I haven't been offered a prop trading position at a firm that doesn't require an initial deposit, otherwise I'd be in favor of that (or even better - to be paid a salary while I am learning). I understand that the standard deposit that many firms ask for is $25,000. If I lose the inital $2500 that they are asking for, it won't break me. My main goal here is to gain some professional trading experience and especially to get my series 7 license. Once I have those, I imagine my options will broaden. The Generic office that I would be working at is in North Jersey. I will be commuting from my home outside of Philadelphia, so I'm looking at a 1.5 hr commute each way. It's a hell of a lot, but I think I can handle it. I have enough desire to become a pro trader to justify the commute. Does anyone know of any prop firms in the Philadelphia area that hire recent college grads? The only one I know of is Navillus, and they are not very keen on hiring traders with no professional experience. Thanks, Michael
I believe Bright has one in Cherry Hill, N.J. Which is a hell of alot closer than Nothern N.J. Who knows you may be able to work something out over there . Explain your situation and see what they say. I would set up a meeting rather than doing it over the phone.
Do you want to position trade or scalp? Do you want to trade Nasdaqs or NYSE? 1.8cents is rape, especially is you only have a 65% payout. If you have to pay 1.8 you should get 100% and that is still bad. Sounds to me like some idiot office manager trying to take advantage of some new grad who doesn't know any better. I know, because this happened to me right out of school. If you are going to scalp, you need much lower commissions to make money in my opinion. I don't know about positioning because I have never done so.
It is a dream to work for a firm that doesn't require an initial deposit and pays you money while you are learning. If this firm exist I would like to know it's name. While it may be a problem to find such a firm , I see only two ways of doing what you want. You put down deposit and negotiate the best possible deal or work and save some money until you can afford learning to be a trader. If there is a company that does not require any deposit you will pay higher commissions .
I am wary of getting ripped off, although I don't know how to protect myself against it. I don't know enough about the business. Which is why I created this thread. I am not looking to scalp. Trading hundreds of thousands of shares per day does not appeal to me. I'd rather be more selective with my trades. The manager told me that I wouldn't be expected to trade a certain number of shares per day. They just want me to make money. Like I said, I'm wary, but I really want to get my foot in the door. I've been out of college for 8 months and I really want to be a pro trader. I have an opportunity here...
Also, Speedracer, it doesn't matter to me if I trade Nas or NYSE. I think if I a good trader, I should have no problem making money with either exchange.