Sidekicker
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ANy companies that let you trade their funds but from your own setup?
arcade setup but from home
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Sidekicker
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Is there any point anymore?
AFAIK, the only reason to work in prop is extra capital and reduced commissions but the desk fees and CGT/income tax take away from that compared to the leverage that can be used in retail.
I make about 5% a month on average at the moment.
Yes plenty of them let you trade remotely. But you usually will have to spend a month or 2 at their offices to prove you have the risk control to be trading with no risk manager to pounce on you. And obviously you will have to deposit enough money with them to cover a couple of months desk fee/ potential trading losses
Sidekicker
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But is there really any point? How much extra capital would they supply per amount of your own capital? Desk fees seem pointless for the rewards you could make doing retail.
DionysusToast
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Sidekicker
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lol @ paying your 'employer' a desk fee
arcade's aren't really employers though, not in the normal sense. They give you capital for a split return. If you can't get a job in an IB, then prop/arcade is the only option...or used to be but then now retail might be better. You don't have the cheapest rates, but there's no desk fees either.
Seems a fair point, firstly they do give you a lot of leverage, that isnt to say you couldnt get that size yourself but it would take a lot longer, they can get you moving up the lot sizes very quickly without having the money at the time do it yourself. I went from 1 lots to 4 lots in my second month in some pretty volatile commodities, trading from home I would have needed to spend months saving up the necessary margin.
But id say one of the biggest reasons to consider the prop route is 90% of the traders are scalpers nicking 2-3 ticks 50-60 times a day on big size. Anything less than the lowest commission rates and the fastest dedicated internet lines plugged right in to the exchanges you are going to put yourself at a massive disadvantage. Take the most secure, efficient and cheapest online futures broker and reduce the roundturn costs by 50% and quadruple the trading speed and you are near what prop shop guys work with.
But, having said this, if you trade 1-2 lots and take more of an an intraday position or are looking to do 2-3 trades a day and capture a good chunk of the days range then theres no real point in trading prop becaus connections and roundturn costs dont matter as much and the desk fees would grind your account down during a drawdown
Most will, no problem at all. But only if you can do what the majority can't - PROVIDE VERIFIED PROOF OF PAST RESULTS.
It can be done as quickly as this -
1. Make an appointment to see the boss
2. Walk in with proof of who you are and the past 2 years of statements showing your profitability (but 50p a point won't count, they want to see proper trading)
3. Walk out with a deal
98% though will fall down at step 2, because they come with 'words' rather than 'hard facts'.
Good luck.
It can be done as quickly as this -
1. Make an appointment to see the boss
2. Walk in with proof of who you are and the past 2 years of statements showing your profitability (but 50p a point won't count, they want to see proper trading)
3. Walk out with a deal
98% though will fall down at step 2, because they come with 'words' rather than 'hard facts'.
Good luck.
Sidekicker
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Club
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I think technology has pretty much (if not completely) reached the point where you can be just as well 'setup' from home as you can in any city trading floor.
So if not for technology, whats the point of trading for a firm ?
Camaraderie....not in this case as you will be at home.
Commissions...depending on your strategy, if you are HFT'ing (Scalping) then it would be a big reason
Account size...this is probably your main reason, but expect what ever prop company to want you to put some of your money down in 'training fees' or partially backed and also expect them to take anywhere from 50+ % of your profits.
If you can already trade then I would suggest staying in the game for as long as you possibly can supporting your own trading.
If you can trade
So if not for technology, whats the point of trading for a firm ?
Camaraderie....not in this case as you will be at home.
Commissions...depending on your strategy, if you are HFT'ing (Scalping) then it would be a big reason
Account size...this is probably your main reason, but expect what ever prop company to want you to put some of your money down in 'training fees' or partially backed and also expect them to take anywhere from 50+ % of your profits.
If you can already trade then I would suggest staying in the game for as long as you possibly can supporting your own trading.
If you can trade
Sidekicker
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You imply it's a tough game to stay in? Not if you preserve capital well and don;t go off the rails.
