Things to know before joing a Prop Trading Firm?

Discussion in 'Professional Trading' started by BostonKiller, Jan 11, 2011.

  1. My question is, what should I look for in a Prop Trading Firm? What to expect and what to avoid?

    Much appreciated?
  2. find out if any of the traders are homeless and sleep there
  3. Bahahaha:D

    At my last prop we used to joke about that after things really slowed down after Q1 2009. Some of the rookies wanted to bring cots in.

    The answer to your question kinda depends on a few things. Mainly...

    Will you be trading remotely or in the office?
    Do you plan to invest capital?
    If you have traded before, what kind of trading do you do?

    Just a few things you're looking for in most cases though: low commissions, low seat fees, low or pass-through data fees, and fast+reliable+customizable trading software.

    I'm guessing you're a rookie, so a firm with some type of mentoring program(not "training") would be good too. A firm that will let you interview with some of their traders as potential mentors is good. They may or may not be willing to let you sit next to them and bug the crap out of them with questions, which you will need to do.
  4. jinxu


    Does that really happen? Can you provide some examples?
  5. Roark


    No, they become homeless and sleep under a bridge after working there. What you should know before joining a prop trading firm is that they are NOT non-profit, educational institutions. They exist for a profit, just as casinos do.

    Before you join a prop firm, you should ask yourself, do I really need to be there? Couldn't I just open an account with IB and lose money myself without paying training and desk fees to a prop firm? If you're lonely and bored trading by yourself, couldn't you just join a chat room or get a parrot to talk to you while you trade?
  6. zdreg


    "Much appreciated? is the ?mark a typo or is it sarcasm?

    this subject has been covered umpteenth times. the search button in the upper right hand corner has a function. start by entering the word prop.