From Prop firm to prop trading for a Hedgefund

Quote from heynow:

I also trade with Etrade and am looking for another firm. I would consider a deal like the one Cre8UrF8 mentioned if anyone wants to PM me. Also if anyone trades thru Merrill I would be interested trading over there as well.
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No traders trade thru Merrill, they trade thru Echo wich clears thru Merrill Clearing, just like a bunch of other firms, Bright and Generic clear thru Goldmans Sachs Clearing.

Take this with a grain of salt, but I hear rumors that Echo might get closed down after the deal goes thru, again they are only rumors and I know nothing definite, but you should at least think about the probability of the rumors before you make a decision
 
Quote from yeayo:

Do you live in a gutter? Why do you assume he's 'hyping it up'? Have you ever trading at a prop shop? Have you ever read the 'funniest things ever at a prop shop'? Are you aware of all the prop shop blowups and shutdowns in the past few years? Are you aware of all the sub llc scams out there? Maybe this guy just wants to deal with professional people and trade in a professional envirnment.
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Let me tell u hedge funds are much safer.. lol. If i had the option I would rather go with a prop shop. What happens if there is liquidation in the fund... or the performance overall stinks and the fund closes down.

Why would a hedge fund even bother with some trader if they are only going to keep 5% of profits.. waste of time and resources. There business model is not designed to collect commisions and fees from traders.. they have to perform or else they face liquidations.

How much money does this hedge fund manage. If its not over $50mil then I wouldnt even look at them. You can practically open up a hedge fund from your basement and manage a few million dollars from relatives and inheritance ( talk to the people in Cali that are cashing out on their realestate).

--MIKE
 
Quote from Trend Fader:

Let me tell u hedge funds are much safer.. lol. If i had the option I would rather go with a prop shop. What happens if there is liquidation in the fund... or the performance overall stinks and the fund closes down.

Why would a hedge fund even bother with some trader if they are only going to keep 5% of profits.. waste of time and resources. There business model is not designed to collect commisions and fees from traders.. they have to perform or else they face liquidations.

How much money does this hedge fund manage. If its not over $50mil then I wouldnt even look at them. You can practically open up a hedge fund from your basement and manage a few million dollars from relatives and inheritance ( talk to the people in Cali that are cashing out on their realestate).

--MIKE
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Let me tell you re-read the first post dumbass. The money is SPIC insured. Safety is not the issue, there is little 'safety' in this business of risk. The issue is dealing with professionals in a professional envirnment. I've visiting a prop firm that blasts tecno music during lunch time. I know of a firm at which lunchtime is poker time. I've traded at a firm where there're some guys that scream like girls everytime a position goes against them.
On the other hand there are a lot of really brilliant guys out there who treat this like a business and they don't want to be in that kind of envirnment.
 
I didn't expect ETrade to shut down their prop division with no advanced warning, I thought is was the most secure firm to be at. But one afternoon they just said we're closed no more trading!! I didn't get hurt and now I move on to another place to trade. No harm no foul.
 
Quote from Cre8UrF8:

No traders trade thru Merrill, they trade thru Echo wich clears thru Merrill Clearing, just like a bunch of other firms, Bright and Generic clear thru Goldmans Sachs Clearing.

Take this with a grain of salt, but I hear rumors that Echo might get closed down after the deal goes thru, again they are only rumors and I know nothing definite, but you should at least think about the probability of the rumors before you make a decision
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The deal is already done and Echo ain't going anywhere. Merrill is not just a clearing firm to Echo. They bought Pax Clearing, which owns Echotrade.

Echo has already implemented Merrill's shortable stocks list. They have the largest base of retail holdings of any firm and the available to borrow list increased by 50% after the merger. It might not matter to how you trade, but the point is that Merrill isn't just a clearing firm to them, they OWN them.
 
I've read from a number of posters here and I heard from a guy last week that Merill does have a retail office near wall street that a number of hedge funds and llcs trade through. You can trade retail thru an llc with greater leverage, better rates, etc. They use ML Pro platform, clearing, and support. I'm not refering to Echo, not sure though unless echo uses ML Pro, and Merill clearing and support too.
 
No, I am not familiar with Neal Berger?

They are headquarterd in NYC or you can trade out of an office in San Francisco also. I am not sure about other office locations, but they will also let traders trade remotely. However I like an office environment, as long as the traders there are professional and there is a profitable atmosphere.
 
What are the rates and for what type of volume. All you mentioned was leverage, which doesn't sound that great anyways. Also, 95% percent doesn't sound all that great either, prop pays 99%. So, if you make a mil, your going to give the hedge 40K a year besides all the commissions that you will pay(which you haven't stated either)? No thanks.



Quote from Cre8UrF8:

I was at E*Trade Professional so I am now looking for a new place to trade. Before I get spammed with offers I have friends at every prop firm out there and already have been offered the best deals from most firms, SO DONT'T BOTHER SENDING ME OFFERS!!

A friend just introduced me to a hedgefund, and they offered me a deal to trade prop thru a hedgefund, they will give me more than 20:1 leverage intraday start witch can increase later and lesser leverage on my overnights, and I can trade equities, options, and futures, and I can trade remotely or in an office. I believe he said that my money deposit would be put in a customer account so it wil be SIPC insured, I have to double check that. I have my licenses, but because it is hedgefund traders don't need to be licensed.

I did this a several years ago thru Blackwood Trading, if anyone remembers them. I didn't have a problem with the setup or the ways things worked there.

I am wonder why more traders aren't taking this route, especially retail traders who aren't licensed, they can get so much more leverage and probably cheaper rates and I believe the payout is 95%. So you give of 5% of you winnings to get 20+ leverage rather than 4:1 intraday, and more than retail's 2:1 leverage overnight.

I have a couple of friends who have been trading with the head guy for a year are two and they say they trust him and never have problems. I checked him out and he has a very solid background. They say because of the less regulation and smaller amount of traders than large prop firms there are less problems and things are taken care of alot faster. Because of the amount of business they do with their clearing firm they have alot of pull and can get things fixed and done they want it very quickly.

Is anyone else currently trading in this kind of situation, and why not?
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