Trade Firm Capital or Capital contribution for new traders

Discussion in 'Prop Firms' started by youngwallstreet, Apr 22, 2009.

  1. As I've mentioned, I can't really comment on most firms. What I have done here, however, is post the basic due diligence for any business venture in this industry. In light of the current set of threads, I wish I could comment further.

    From Previous:

    1. Broker Dealer
    2. Exchange member or, at minimum Introducing to registered frim with proper licensing requirements.
    3. Aligned with a quality Clearing Firm. I'm very pleased that we hitched our wagon 30 years ago to Spear, Leads and Kellogg who was merged with Goldman Sachs several years ago...(not Bear Stearns, or Lehman, bummer).
    4. Check balance sheets, have reviewed by someone who understands securities accounting.
    5. Visit home office (heck even fly to Vegas for a couple hundred bucks before putting up money).
    6. Training (this is a tough one). We offer very cheap ($1000 or less) program, open to the Public. We bring in our top traders and groups to share current "stuff" - but more important, we try to convey the "Business of Trading" to everyone...whether they plan on joining us or not. I have traders from "brand x" firms here all the time...I simply ask that they tell me, but if not, that's ok too. Because of this, I question some super high priced "training programs" because some have been used to get around legalities etc. I, can't comment any further on a public board obviously.

    (The above is not directed to any particular Firm, and there are always exceptions to "some" basic business practices, I'm trying to help...and, "of course" we have tried to run our business in such a fashion as to "pass muster" on these topics).

    All the best,

    #11     Apr 23, 2009