What is the typical tuition or fee for any training provided by prop shops, and what kind of training can one expect for that fee/tuition? Is a prop shop better or worse based on tuition charges? What do you think of a shop that charges $6000+ tuition for a week of training but does not require a risk deposit to trade a $50,000 account? Thanks for your input. Susan
To be honest with you. I have traded equity for years. I started out with Hold Brothers or as it was back then online investment services. I did not pay a tuition and I even got a 28k a year salary with 98% payout. I know times and the markets have changed. But still a tuition in my opinion is something that someone charges when they dont care if you fail or not atleast they can have money upfront from you before you go. The tuition classes are no more than watching people to trade which a lot of firms will do fro free, a mentor. Also the so called classes in a tuition program are nothing more than people teaching you from a book which you can buy yourself and save a lot of money. Please look around there are a lot of non tuition places out there. I do not trade equities anymore. I just turned to the other side and started trading futures, for me it is more cost effective.
Thanks STEERAM. I appreciate your quick response. Good food for thought. Do you recommend any firms in particular? Thanks again.
I trade prop at hold and the secret in any shop is to get under a good group. Hold is a solid prop shop but if the group they put you under is worthless, then you'll be in a tough spot. I didn't call hold when I started, I met the head trader of a group in fact in this web site and he invited me to trade under his group. It seems that finding a good shop that is honest is hard these days but if you find one, you will not have to pay any tuition except of course for the market. The head trader will lay down the foundations of trading to you, review your trades, let you watch them trade and give you the psy talk when needed. Depending on your sitch, they will get a cut of your pay and some of your commision in exchange. I traded retail for 5 mos without knowing what a bid/offer was then went prop because of the training. What's the point of going retail, getting a 100% payout but making no money? I am a pro prop guy no doubt having been on both sides of the fence. Many people here are divided on this matter as you will see.
Brazilianwonder, I have been trading (profitably, from home) for a few years on my own through IB and have looked at prop trading before, never being able to make the case for it. Perhaps I don't understand well enough the reasons to go in that direction, and wonder if I am missing an opportunity here. Can you give me an idea what you think are the benefits of going prop? For example, you like trading there because of the training you got or the near real time guidance you are getting? Or? Are you a remote trader or you trade on site? What are the commissions you pay and other fees you are responsible for? I would appreciate any insight. TIA.
Benefits of going prop. I know you asked Brazilianwonder, but I figured I'd take a shot. Fees and commissions vary from firm to firm. 1. if you're new, you maybe able to find a mentor 2. if you're strategy is capital intensive and you need more capital than you have, it's available to you 3. you may come across other ideas that you haven't thought of from talking to other traders 4. commissions are generally cheaper, so if you're strategy is commission intensive you will make more money 5. may have more resources available to you, depending on the firm If you none of the above are any use to you, you're better off staying on your own.
Yannis, SD makes good points about joining a prop company. I am a scalper so commission costs and leverage are very important hence going prop and staying prop is important not to mention the one on one training I got which was priceless. If you don't do volume and you can pull a nice living with a 4-1 leverage, then prop won't make much sense but if you are starting with little capital and want to learn how to trade, prop in my opinion is a good start.
Thanks guys, I appreciate your input. Since in general I am confident about my trading and don't need more capital, I don't really feel prop trading is for me at this point. Lower commissions might be good, but IB is pretty cheap already, and so my incentive is kind of weak. Changing trading platforms etc might be time consuming too. Oh well, good luck to you all, thanks again
Brazilian Wonder, I am trading for 4 months with a prop firm which does not provide any training/ mentorship. I am looking to move to a honest/solid firm. You said Hold is a solid shop but all depend on the group they put you into. Can new traders decide which group they want to join? I am serious into trading and cannot waste more time. Thanks in advance for any input.