What is behind the latest craze of new "prop" shops opening up?

Discussion in 'Trading' started by Copernicus, Aug 16, 2006.

  1. It seems that there are firms literally from A to Z recruiting now.

    Whats up with that?
    0 cent commissions, 110% payouts and crazy leverage?

    Its becoming like FX

    Makes no sense to me, its not like its 1999. Why are these people accepting crazy thin margins while taking so much risk?
  2. The existing firms have to be earning decent money which is attracting new competitors to the arena. A good meltdown will wash out a lot of them all at once. We'll see.