Big-3 "Pay2Play" Prop Firms and the COVID-19 crisis?

S

SelfMadeDude

My question for open discussion is how do you think these companies will fare in the wake of this current crisis? After all, it's a question of the financial health of their broker. Right? If their broker goes bust, they are essentially out of business...


I don't recall any of the Big-3 Prop Firms (TST, OneUp, E2T) having been around for 2008 Financial Crisis - I could be wrong and would welcome any information from those members with deeper industry knowledge with respect to how solid their foundations are.
 
I have updated the title to more accurately reflect the distinction in their prop firm category.

Agreed...most are trading on sim -- but within the past few months, they have been very transparent about that. At the end of the day, most traders are not experienced enough to take a profit withdrawal anyway so there was nothing for them to lose by being honest. Rather, it was a savvy move.

Not very worried -- rather, just curious as to how they will fare in this whole crisis and wanted to get some thoughts from those members who have more insight into the industry.
 
All the revenue is from selling tests. Backed traders are more of an annoyance than anything else. Probably doing better with thin markets blowing people out.
 
Hi guys,

Not 100% sure if you're speaking about the candidates or the live traders.

Regarding candidates, we haven't experienced a marked increase or decrease in subscription rates over the crisis to date. We assume this is owing to the fact that retail trading is a stay at home occupation for the most part. The examinations are conducted on a simulator. That's clearly stated on our website, emails, dashboard and in our marketing materials.We don't see any indication that data feed providers are experiencing drops in subscription, so we don't expect any changes on this side.

Regarding live traders, we can't speak for other companies but all of our successful Gauntlet Mini candidates go onto trade with Helios Trading Partners. They trade live accounts with real money. It is not a simulated account. @PoopyDeek @SelfMadeDude. In the last two days 17 people have successfully completed the Guantlet Mini and received live trading accounts with Helios Trading Partners.

In our 60 day Gauntlet account, candidates first trade a simulated account until they make their first profit of $5,000.00 and then they go onto live. The reason for this is that in the Gauntlet candidates can hold overnight positions, which means that the entire margin needs to be put up by the prop trading firm. Therefore the prop firm wants another step in between before putting up so much money to secure the trader. For intraday trading such as in the Gauntlet Mini it is not necessary because the margin requirements aren't so high.

Regarding brokers, we have not heard any issues coming from Helios' brokerages (Ironbeam and Dorman) and don't expect any issues in the near term. If something comes up they'd surely be able to transition to alternative brokerages.

Finally, we understand that COVID-19 has caused uncertainty in all facets of our day to day lives. Thankfully in our industry we should be able to whether it more than most since we all basically work from home to begin with. We hope you all stay safe and wish you the best in your trading.
 
Not saying this to be mean, but I’ve been doing this 22 years and I’ve never heard of any of these “Big 3” prop firms.

Are they currency or crypto props?
Serious question
 
The reason you have never heard of these firms is because you are in a different category of trader.

You are driving a Ferrari while we are taking the train with our Metrocards. No facetiousness -
 
@Earn2Trade
I did not know you also have Dorman as your FCM. Can a funded trader choose which FCM he wants to have his account with?
 
And BTW, if no bad news is announced with regard to potential liquidity problems of these prop firms next week, it means they survived the worst. Congratulations to your risk managers as they are the most important people in every trading firm. Keep up the good work
 
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