Average Prop Trader Salary
- Thread starter Pirate12345
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perhaps those numbers are in aussie dollar which would make them much more believable.
RT_Trader
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Alpha Dawg,
Can you please translate what you just typed? Only parts of it were English with very poor grammar. In any case, I have heard of some proprietary trading firms that pay salaries to their employees e.g SIG pays approx. €55K per annum + bonus to its Grads in Dublin, Ireland. The Optiver salary looks realistic since I have heard some figures similar to these in AUD for their Australian traders.
Does anyone have an idea of the standard package for a grad/junior trader in Europe/America and how it's calculated?
RT
PS. Alpha Dawg, I'm interested to find out about this branch of mathematics called 'calcus' you have discovered - is it Vedic?
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forget asking how a salary is calculated. Trust me there is no such thing as a free lunch, your salary is a future draw. If you do well your salary is taken out of your bonus pool. If you don't make money your sacked and the firm takes a small hit - simple.
Alpha Dawg
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exacly bruv, jus as i said
unfortuntly the gay mods decide to delet all my 'sense makin' posts cos they fink they know it all yet dey know jack
Lightning McQueen
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admin deleted your post, for admin to act proves you are seriously pushing the boundaries on the site guidelines for posting, I suggest you read and adhere to them or your stay here will be short indeed!
Alpha Dawg
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admin know jack
maninthearena
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What does the firm get if the prop trader takes home 100% of his profit?
arabianights
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comission, lots and lots of it
what at around 10p per trade - get real - the money is in the trading profits - apart from some EXCEPTIONAL high volume traders - traders do a few hundred round trips per day. That equates to , say £20 to £50 per day in commissions generated. That is not lots of money. No SERIOUS House is in it for the commissions. If they were they would go to the retail market.
KillPhil08
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And they make money off the stations no?
arabianights
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well, then how *does* someone self backed on 100% make the house any money then!?
minime69
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even a grad fresh of a course does a few hundred rt a day and then they give up some trading profit as well, arcades make there money from rt, desk fees.
Arcades who back traders, experienced or grads never offer 100% backed deals. There is always a profit split based on past performance.
minime69
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i was simply saying grads pay a split and generate rt income for the prop shop, and 100% self backed traders only generate rt income, but both generate income from desk fee's.
and just wanted to add this, even some of the self backed guys have started to give up 10%-20% of there profits, since margins have gone up they have lost trading power so need to do this to keep the size of trading the same( or put up more money)
My last deal at Marex Trading was STG 1000 per month plus 50% of the profits. IF you're good at what you do they'll back you very well.....
Surely, though it's the decent traders that make the firms the bulk of their money. The guys clicking away doing a couple of hundred rt's on a 50:50 split are kept on in the hope they will improve - a lot of them cost the firm a fair bit in trading losses. The profits come from the lower % of much higher/more consistent profits and 10 - 20p per rt on decent volume. Traders on 90% deals or self backed usually do much more volume than those still on 50/50. I don't think much profit comes from desk.
A
au959
Hi,
Id like to clarify what firms like Tibra do and how people are compensated. The original post asked about salaries at firms like mine and our competitors.
The discussion on this thread seems to be largley about profit splits, commissions, staking traders, backing traders, draws and so on.
Firms that provide financing, leveraging and living allowances (later recovered from profit splits) and which make their money from profit splits and commissions are very common in Europe but not so common here in Sydney (maybe a few futures arcades around).
Firms like Tibra are very different to this. We are not a prop shop or arcade as is being described here.
We are a company, with a company structure and around 200 employees.
First, our base salary is $100,000 AUD or if in London , a minimum of 65k GBP. We generally target the brightest graduates, but will look at anyone smart enough and talented and dedicated enough to succeed. We dont recover this amount from bonuses or anything like that, but we are quite stringent, especially in the first 6 months or so.
Second, there are no fixed profit splits, the relationship between trader and company is one of employee and employer...we pour huge amounts of resources into our trainees (training, theory, simulation, infrastructure, automated systems etc)
Bonuses are paid out twice a year (at Tibra only), and traders remuneration is tied not only to their own performance, but the performance of the company globally...
While individual PL is important, there is very much a team atmosphere, many strategies are shared, trading teams can be 1-9 people, and our infrastructure supports a very large operation. We have more than 70 IT professionals supporting about 70 traders. We trade dozens of exchanges (primarily derivatives) around the globe and execute many thousands of trades per day with custom built in house systems.
It is very important to understand the fundamental difference between our company and prop shops / arcades...we work as a team and we share the rewards. This is the biggest difference between us and an arcade.
As traders progress, they become stakeholders in the business (much like becoming partner at a law firm)...meaning that they share the success of the company even more than a regular trader...
Finally, we offer equity partnerships to really successful traders and IT staff after a few years and this makes them real partners and true equity stakeholders in the business...
A good trader in his first year with us who isnt worth a 50% bonus (of base) probably wont be retained...100% is common and much higher occurs regularly as we have a lot of talented people
Further growth depends purley on individual and team performance... but good, consistent, senior traders have done and will do better than anyone at an IB or hedge fund (unless perhaps they run or part own the fund)...especially for the next few years...
So, i hope people see the difference between a 'prop shop' (i like to call them 'shooting galleries') and a trading firm like Tibra...
Id like to clarify what firms like Tibra do and how people are compensated. The original post asked about salaries at firms like mine and our competitors.
The discussion on this thread seems to be largley about profit splits, commissions, staking traders, backing traders, draws and so on.
Firms that provide financing, leveraging and living allowances (later recovered from profit splits) and which make their money from profit splits and commissions are very common in Europe but not so common here in Sydney (maybe a few futures arcades around).
Firms like Tibra are very different to this. We are not a prop shop or arcade as is being described here.
We are a company, with a company structure and around 200 employees.
First, our base salary is $100,000 AUD or if in London , a minimum of 65k GBP. We generally target the brightest graduates, but will look at anyone smart enough and talented and dedicated enough to succeed. We dont recover this amount from bonuses or anything like that, but we are quite stringent, especially in the first 6 months or so.
Second, there are no fixed profit splits, the relationship between trader and company is one of employee and employer...we pour huge amounts of resources into our trainees (training, theory, simulation, infrastructure, automated systems etc)
Bonuses are paid out twice a year (at Tibra only), and traders remuneration is tied not only to their own performance, but the performance of the company globally...
While individual PL is important, there is very much a team atmosphere, many strategies are shared, trading teams can be 1-9 people, and our infrastructure supports a very large operation. We have more than 70 IT professionals supporting about 70 traders. We trade dozens of exchanges (primarily derivatives) around the globe and execute many thousands of trades per day with custom built in house systems.
It is very important to understand the fundamental difference between our company and prop shops / arcades...we work as a team and we share the rewards. This is the biggest difference between us and an arcade.
As traders progress, they become stakeholders in the business (much like becoming partner at a law firm)...meaning that they share the success of the company even more than a regular trader...
Finally, we offer equity partnerships to really successful traders and IT staff after a few years and this makes them real partners and true equity stakeholders in the business...
A good trader in his first year with us who isnt worth a 50% bonus (of base) probably wont be retained...100% is common and much higher occurs regularly as we have a lot of talented people
Further growth depends purley on individual and team performance... but good, consistent, senior traders have done and will do better than anyone at an IB or hedge fund (unless perhaps they run or part own the fund)...especially for the next few years...
So, i hope people see the difference between a 'prop shop' (i like to call them 'shooting galleries') and a trading firm like Tibra...