Best Discretionary Trading Prop firms

[Maverick74]

1) There is no such thing as illegal leverage. Leverage is governed by the exchanges and the clearing firms.

2) Prop firms require "licensed" traders. Retail brokers do not. THAT is the difference.

3) Regulation costs are less. But it has nothing to do with leverage. The yearly audit expenses most professional firms have to go through today make it cost prohibitive to run a prop firm. So some firms are going offshore. I would avoid those.

4) US citizens bring US regulations with them and that means US regulation costs. It's all about economics.

 

[Peternam]

It's just as hard in Europe and in Asia. I'm by no means an expert on this, I'm sure there is a ton of info on the web from a foreigner's perspective about how to try to finagle your way into the US or Europe. You could try the Bahamas or the BVI. There are some hedge funds down there and residency should be much easier.

Any specific funds in mind ?

 

[garachen]

About half the people I work with are on H1-B visas. And take a look at the MFE program at Berkeley. 90% of grads will need an H1-B and they all seem to get employed.

But, your idea of a prop firm won't work. Even if it did exist they wouldn't sponser a visa. Visas require the employer to pay a set salary depending on your position. The salary requirement is actually pretty high.

Your only shot would be at a trading firm where you trade the way they want. No long term discretionary position taking.

 

[dealmaker]

Any specific funds in mind ?

Funds have access to the best of the best if you have to look for them you have no chance and if their a small startup fund where they are looking for talent they won't have the means to sponsor you...Your best chance is EB5 ie $500k investment at an approved project...

 

[nemesis45]

About half the people I work with are on H1-B visas. And take a look at the MFE program at Berkeley. 90% of grads will need an H1-B and they all seem to get employed.

But, your idea of a prop firm won't work. Even if it did exist they wouldn't sponser a visa. Visas require the employer to pay a set salary depending on your position. The salary requirement is actually pretty high.

Your only shot would be at a trading firm where you trade the way they want. No long term discretionary position taking.

Hi,
So if I go through an MFE program, I have a chance to be employed by a good prop firm at US?

Could you give me some information about good true prop firms operating in US, who may be open to backing foreigners with good track records.

 

[garachen]

Hi,
So if I go through an MFE program, I have a chance to be employed by a good prop firm at US?

Could you give me some information about good true prop firms operating in US, who may be open to backing foreigners with good track records.

The language you are using is problematic.

Prop firm is too ambiguous of a term.

1) A place that requires you to put up capital and they make money off your trading frees. I have no direct experience with these places. I know they are frowned on by the CME and regulators. But I doubt they would 'hire' you. I'm not sure it would even qualify as a job.

2) somewhere similar to the above but you don't have to put up money. I have no experience with these either but from what I've read it doesn't seem like they give you much leeway.

3) A place that pays you a salary and you trade their methodology. I tend to call this a 'trading company'. There are tons of these. Mostly in Chicago. They hire lots of MFEs but you still have to have what they are looking for to get the job. They will care very little about your track record. Might even see it as a negative if they don't like your style.

I don't see MFEs taking option 1 or 2. Lots take option 3 or something else.

I used to hire MFEs. Still have 2 of them but they generally don't seem to make great traders. It's best to get them right out of a bachelors program. More intuitive at that stage.

You might not find a trading job but you'd find somethat that pays 100-140/year if you interview well and have a good personality.

For experienced traders the rules are a bit different. But, as I said before, that would start at a multi year track record of over 1M/ year. To get the 'standard deal' at a trading company you need to be doing at least that.

Of course, there may be exceptions. I'm only going off what I do, the places I've worked and the experiences of people I've hired. That probably represents about 25% of the Chicago market. There could well be other stuff out there that I'm not aware of.

 

[nemesis45]

Prop is actually defined by CME.

No I just need someone to back me with my methodology.
1) and 3) are truly out of question. Any good places for option 2)?

Well I'd only be interested in trading.

ok. good at least I have an idea of the kind of track record I need.
So If I am making 1M/year + , I have a good chance at a deal?
What is the standard deal, and what are such good trading companies.

Yes. I am looking for replies exactly with personal experience and first hand knowledge, because it seems hard to find on google. Seems invaluable.
Chicago is the center of Prop?

 

[garachen]

Prop is actually defined by CME.

And they mean number 3. Number 1 they call a trading arcade and I'm not sure number 2 exists. People here seem to think so, that's why I included it. I know nothing about it. Good luck.

 

[nemesis45]

Yes I've worked for a couple of no2's.they do exist.
So what did you mean by track record of 1M/yr?

 

[Maverick74]

It means they generally want to see 3 consecutive years of a million or more in net profits.