What does it mean when they say - "Chop Shop"?

Discussion in 'Prop Firms' started by hairdresser, Jan 17, 2006.

  1. in the prop world, not the hair services industry.
  2. Firm is just interested in generating commissions. High turnover rate of traders generating commissions for the firm
  3. sbn


    what firms qualify under that definition, out of curiousity.
  4. For example what kind of commission rate? Do the traders put up capital?

    I always here FNYS is a Chop Shop.
  5. cstu


    I would be more interested in what firms are not chop shops? What firms actually care about a business plan, a trading model, a traders ability. What firms actually try to figure out if someone is going to make money. Better yet, give me a firm that requires a deposit but is actually at risk financailly if the "trader" can't trade himself out of a paper bag.
  6. Does this exist? What do they care, always another willing warm body to replace the seat left vacant
  7. FNYS is not a chop shop. Much more respectable.

    Chop shops are standard day trading firms that regularly recruit new traders and look primarily at your trading volume in structuring their deals: Carlin/Generic, Hold Brothers, Genesis, Andover/Assent, HLV to some extent--at least those are the onces I know of in the NYC area.

    That said, you can make it quite well at a chop shop--they're not necessarily a bad option--you just have to be ready for the amount of discipline required to adapt your psychology to the demands of the market, without really committed training, and for the possibility that they may screw you over on your commission deal if you're not familiar with what good rates are. If you're disciplined and independent, and ready for a challenge, you can get what you need at such places. They're dirty bastards in more ways than you could expect, but they can give you the tools you need.
  8. Well put.