Is there a List of "Prop Trading firm with ranking and etc"?

bone said:
The way proper, registered futures prop firms work is that they pay their employees a draw salary, and at the end of the year they pay out the bonus (the split). They will also pay you on a W-2 per exchange rules.
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"Proper" is the key word.. I agree 100% the most legitimate and honest business model for so called "Prop firms" is
A)apply own capital,
B)hunt talent at own costs and then
C) the traders are paid based on performance.. just like any other job if you dont perform you are out. you perform you get a bonus.

The only other ethical model is "First loss funding"

Everything else is "selling pipe dreams of education + carrot of funding" while hiding if the Model actually makes money by selling "Tests" or from funding activity and to polish it off by saying 1) yah.. but people need it + 2) We are bringing trading to the masses LOL
Since there are enough suckers to take the Pay test model and regulators don't care.. everything is fine!
One day I hope a better model from consumer point of view comes up!
 
If someone runs into this issue with anyone purporting to be a prop firm that trades exchange futures, and for any reason takes employee/trader funds - please complain to the Chicago Mercantile Exchange. Because it's definitely against their rules for electronic trading firm membership.

traderjo said:
"Proper" is the key word.. I agree 100% the most legitimate and honest business model for so called "Prop firms" is
A)apply own capital,
B)hunt talent at own costs and then
C) the traders are paid based on performance.. just like any other job if you dont perform you are out. you perform you get a bonus.

The only other ethical model is "First loss funding"

Everything else is "selling pipe dreams of education + carrot of funding" while hiding if the Model actually makes money by selling "Tests" or from funding activity and to polish it off by saying 1) yah.. but people need it + 2) We are bringing trading to the masses LOL
Since there are enough suckers to take the Pay test model and regulators don't care.. everything is fine!
One day I hope a better model from consumer point of view comes up!
More...
 
traderjo said:
The only other ethical model is "First loss funding"
More...

I would argue that "first loss funding" is against CME, ICE, and Eurex electronic trading firm membership rules. Again, if this business model includes exchange traded futures then by all means please complain to the CME and they will shut that down. Proprietary futures trading firms are NOT allowed to risk employee (trader) funds - they can ONLY risk capital belonging to the firm principals.
 
oh so First loss funding is also not allowed? but Professional Fund managers and may be CTAs are funded that way sometimes are they not?
PS I have not lost any money with any such dodgy practices so won;t be complaining to CME ...I am just echoing concerns about "Pay the test model " after reading your earlier post... all good
 
Apples and oranges. And no about CTA partnership prospectus as compared to a proprietary trading firm employee agreement.

traderjo said:
oh so First loss funding is also not allowed? but Professional Fund managers and may be CTAs are funded that way sometimes are they not?
PS I have not lost any money with any such dodgy practices so won;t be complaining to CME ...I am just echoing concerns about "Pay the test model " after reading your earlier post... all good
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I have a client who transitioned to live about five months ago. He has been reporting very impressive results with a 70% W/L rate. I hope I didn't jinx him.
 
bone said:
The way proper, registered futures prop firms work is that they pay their employees a draw salary, and at the end of the year they pay out the bonus (the split). They will also pay you on a W-2 per exchange rules.
More...
True
But people confuse between that and the mushrooming Pay for Test Pretend Propo_O
 
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