http://notablecalls.blogspot.com/2010/07/schonfeld-letter-to-traders-it-is.html "The days of a trader making a living by generating $50k to $75k of adjusted gross annually are over"
It's not clear what your point is. If you put the Schonfeld quote in context, it's clear that they're simply pruning the smaller players. I'm not that familiar with Schonfeld, but there are obviously many Wall Street firms that are not interested in doing business with "little people". It's been that way for a long time. Taken out of context, the quote seems to imply that $50-75k is neither a reasonable return, nor one worth pursuing. Someone who says that is entitled to his opinion of course, but I think it's pretty laughable.
The public is leaving the markets. Thats why its so tough. The back bone of the capital markets is longterm investment capital and no one wants to particpate in a shit system that is very risky.
I have worked in the futures Industry for 11 yrs. Much as a prop trader for a large FCM in Chicago. I have read so many posts and reply concerning prop deals . This one warranted a reply. MY experience is that any firm offering reasonable spits of 50, 60,70 respectively for a three year commitment as well as seat lease and other expenses covered. Expect the trader to make them around a million dollars a year. Most educated but inexperienced traders are gone in days or weeks. The good news is if you can come close or exceed firm expectations you have had a good year and job security. To context this you have member rates, and volume is added with activity not fixed dollar thresholds. Under these conditions the firm expectations are attainable. A retail accounts parameters would make this impossible unless funded at a few million. And commission costs for this type of trading activity would be astronomical. Successful prop strategy's would eat upwards of 40% profits. All and all I wonder how some prop shops operate. Are they just looking for order flow or profitability.