Start a prop shop?

[mike120]

Hi guys,

I'm new to the forum but have been lurking for a few months and relatively new to finance. By that I mean I am in my first year of a Finance & Economics degree.

Just a random question but how much do you think it would cost to start up a prop trading firm?
It's obviously not something I'm looking at doing in the foreseeable future but perhaps one day. I'd just like your opinions on how much you think it would cost.

Thanks

Mike

 

[glyder]

Get really profitable and prove it, get backing from a big city instituiton and it won't cost you a penny. Its that easy.

 

[mike120]

What if you were to do it on your own? As in just raising the capital on your own?

 

[SanMiguel]

What if you were to do it on your own? As in just raising the capital on your own?

probably about 100k.
doN;T FORGET EVERYTHING YOU NEED INCLUDING RISK MANAGEMENT SOFTWARE, LAWYERS FOR TRADERS' contracts, any FSA regs if needed, payment processing software, equipment, etc.

 

[mike120]

Wow, thats alot cheaper than i thought. Is the 100k including the actual investment account. Not sure if thats the right term but you know what i mean

 

[SanMiguel]

Wow, thats alot cheaper than i thought. Is the 100k including the actual investment account. Not sure if thats the right term but you know what i mean

By that I mean I am in my first year of a Finance & Economics degree.

got a spare £100k as a student have you?

Talk to arabiannights, he might know although he may ask you how your balls smell first.

 

[mike120]

Yeah i wish!I just assumed it would be a lot more as in 1m+.

Only got £99,995 to go 'till i can do it then!

 

[DashRiprock]

100k is too low i think. you do need money to back traders after all

things like

* exchange memberships
* mifid / BIRPU / fsa regs (and capital requirements)
* solicitors / accountant bills
* operating capital to last until you make profits
* trading capital, 25k say for 20 traders

I reckon you'll need about 1.5mm and upwards

 

[meanreversion]

Where are all these traders going to sit? You'll need to take out a 3 year lease on a space which will need work doing (desks, chairs, wiring and so on). Then you need to employ someone to be your office manager etc. I would say £1mio is a good starting point.

 

[traderman1]

Hi guys,

I'm new to the forum but have been lurking for a few months and relatively new to finance. By that I mean I am in my first year of a Finance & Economics degree.

Just a random question but how much do you think it would cost to start up a prop trading firm?
It's obviously not something I'm looking at doing in the foreseeable future but perhaps one day. I'd just like your opinions on how much you think it would cost.

Thanks

Mike

As a Finance and Economics student, the questions you should be asking are: Is it worthwhile to open a Prop Trading firm and Why would anyone want to do it?

 

[mike120]

As a Finance and Economics student, the questions you should be asking are: Is it worthwhile to open a Prop Trading firm and Why would anyone want to do it?

Excellent questions! Do you have any insight?

 

[FUTEX]

Wow, thats alot cheaper than i thought. Is the 100k including the actual investment account. Not sure if thats the right term but you know what i mean

Here is a serious business offer. Futex just happen to have funds for opening offices. If you can open one for £100,000 please come and see us, the investment is here for you.

 

[titaparag]

am a intraday trader in euro futures but having no funding for trading at present, we have a team of 10 traders who can work as prop trader on profit sharing basis. Can easily make 500 to 700 $ with only 1 to 2 lots & if given more limit i can make any amount. I always trade with Auto stop orders keeping in mind small profits & losses. As we are trading in futures so funding requirement is only 50k $ for trading and 20k $ whole years expenses including everything. Profit sharing ratio will be 50 % and there will be no sharing in losses. We have our company already setup only need funds to start trading live. One can easily expect 15 % to 30 % per month on amount invested to start with and gradually performance will increase. One can even start with 3 - 4 traders inorder to be on saferside, once u see our performance can increase it to 10.
We are from India & can work remotely or even from anywhere.
If u r interested then please let me know... u can contact me on [email protected]

 

[titaparag]

Here is a serious business offer. Futex just happen to have funds for opening offices. If you can open one for £100,000 please come and see us, the investment is here for you.

am a intraday trader in euro futures but having no funding for trading at present, we have a team of 10 traders who can work as prop trader on profit sharing basis. Can easily make 500 to 700 $ with only 1 to 2 lots & if given more limit i can make any amount. I always trade with Auto stop orders keeping in mind small profits & losses. As we are trading in futures so funding requirement is only 50k $ for trading and 20k $ whole years expenses including everything. Profit sharing ratio will be 50 % and there will be no sharing in losses. We have our company already setup only need funds to start trading live. One can easily expect 15 % to 30 % per month on amount invested to start with and gradually performance will increase. One can even start with 3 - 4 traders inorder to be on saferside, once u see our performance can increase it to 10.
We are from India & can work remotely or even from anywhere.
If u r interested then please let me know... u can contact me on [email protected]