Base Salary + Payout

Originally posted by chasinfla
so i guess we're trading against those guys.
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Well... maybe, but not exactly. Because a lot of "prop trading" on the Street involves more than just equities. Some of them do fixed income arb(treasuries, or CMOs, MBS), others do options arb, futures arb, swaps arb, volatility arb, and a host of other strategies.

So, only a portion of the capital is devoted to equities. And they have different horizons then the daytraders. So, most likely you are competing with your fellow day traders or maybe a fund managers trying to get out of positions that day. But most likely just your fellow short-term traders.

trader99
 
When you guys discuss prop trading, are you also referring to Nasdaq market makers? Market makers still make a decent living and I wouldn't mind having that job.
 
Originally posted by trader99


But as prop traders, every day you have to make money to feed yourself and with no benefits, health insurance, 401K, paid vacation,ec.

but you get FREEDOM! That's a pretty good exchange I think.

trader99
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I came across a firm that actually gives health insurance as a perk to traders once you have been there a few months. I have to say that they are small, but very honest and trustworthy. Probably one of the nicest places I have seen (not that I have seen all of them). I spoke to lots of places and was extremely impressed with them. Actually gave you exactly what they promised and no small print to worry about. (No, I'm not talking about Schonfeld). Actually surprised that much larger firms don't offer the health package. Would make traders very happy.
 
Originally posted by chasinfla
are you going to name names?
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I don't like to publicize names. But if you want to know, CLEAR YOUR MAILBOX and maybe I'll send it to you. :D
 
Darn it, I thought I would lose Junior status after 20 messages. Apparently I need 30. So do I post a bunch of wasted ones or bide my time ? Decisions are so tough to make. Just like picking a firm.

And Chas, thanx for clearing your box.
 
Prop firms are more concerned with your profitability than health insurance. Most firms pay its prop traders on a W-4 basis, which makes them independent contractors. You are responsible for paying your taxes and health insurance. Monthly salaries/draws and paid health insurance for prop traders ended in 2001. During the next bull market, I'm sure these things will come back. For now, the name of the game for prop firms is survival and cost-cutting. If you want paid health insurance, you should seek a permanent job.
 
We pay by K-1, which means you don't have to pay FICA (saves you about 15% right off the top. We offer a "PEO" plan for health insurance. You can ask any manager about the costs involved, etc.

Don
 
Benefits.. Bright, and ETG and FNY have medical insurance available at some cost to the trader.

K-1 avoids FICA but also prevents the setting up of a retirement plan.
 
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