Why not remote prop?

Discussion in 'Prop Firms' started by zippie26, May 18, 2005.

  1. To all the retail traders here, why woulld you not try to go remote prop?

    Assume no minimum deposit, a decent split, reliable software and service.

    I see a few firms such as Bright and Schony offer remote, but it's not very popular...if someone nets about 150K a year retail, why wouldn't they go prop to increase their net through increased buying power?

  2. m22au


    Off the top of my head:

    lower commissions at non-prop broker
    SIPC insurance
    no series 7 and other regulatory requirements

  3. SIPC is not really necessary if you are not using your own capital, and I don't think a series 7 is a huge requirement.

    Lower commissions I can see, but if you are paying, like 8 bucks a thousand but gaining much in the way of leverage I think you could easily make up the difference.

    Thanks for the reply.

  4. At a minimum, you have at risk the capital that you've made during the month, and that assumes you didn't have to pur down money or build a capital account.
  5. ig0r


  6. I'll beat all the cheerleaders to it and say Cyber, possibly IB.
  7. I agree, but if you deal with a large firm like Schony I don't think you need to worry about default.
  8. Do it if you like it. Why as why other people don't do it? Just do it yourself and don't worry about where other people trade.
  9. ig0r


    With per share pricing, I see 0.006, with per trade I see $10 for 5000 and 0.003 after that (so 0.002-0.003). Honestly, any prop trader paying more than like 0.005 at this point (unless he's getting some real nice fringe benefits) is being ripped off and they know it. I still don't see why a profitable trader would go retail except for the SIPC insurance - but at what cost?


  10. This is a message board. If you don't like the topic, don't post.
    #10     May 18, 2005