Not sure if posted b4..but deciding whether Prop Desk Trading or Financial Advisor Position

M

Maikkontos

Good Evening everyone,

So here is the scenario. I was previous an FA with AXA, and National Securities, but it didnt work out, but I originally thought at those Firms, I would be trading at first since I was a newbie. And I have been away from the FA role for little more than a year and have a year left until my licenses (series 66, series 7) expire. And I just had an interview with a equities prop desk trading firm(still need to learn more) that may be willing to sponsor me for the series 57, but with how trading is going in the future, my question is, is it worth to let my series 7, 66 expire and pursue prop trading and get my series 57. Or is it better to keep my series 7, 66, and just trade as a retail trader and learn as much as possible first on trading. The only thing is I feel ill learn better from professionals than books, etc.




Thank you in advanced.
The confused Trader/FA
 
Maikkontos said:
And I just had an interview with a equities prop desk trading firm
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Can you offer more details of the offer? Is this a true prop firm where you are an employee with their capital at risk or a JBO prop firm with your money as first loss.

BTW, did you ask why that broker dealer can't maintain your 7 and 66 for you? I'm not clear on those rules. They might have to be FINRA BD vs another SRO.
 
Do some deep digging on the firm who offered you S57 sponsorship. Look at what kind of training they offer; typically a firm where your money is first loss won't be investing in with you through the training, but selling it to you as a product, if the firm is backing you fully and willing to train you then there is more likely something to learn there.

My vote would be to take the extra time and start out trading retail while maintaining your 7/66 registrations at an FA firm. There are no shortcuts for learning to trade, and you most definitely won't learn more than the basics by shelling out money for classes from a guy who is teaching 100+ other traders the same methodologies.
 
From speaking with the office manager. The prop is only commission only no salary payout of 30% percent and use their funds on. Stop loss is small. The person I spoke with said they won't hold the series 7 or 66 but he wasn't sure he had to speak with the main office in nyc
 
Maikkontos said:
The prop firm pays no salary but since they are providing me with the funds to trade I keep 30 percent of any profits I reap.
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In general, this payout is not bad. It depends on other factors like:
  • Are they charging you a desk or overhead fee to your P/L that is excessive?
  • Are they passing along their trading cost or marking them up?
  • Are they passing along their short stock fees and debit interest at cost.
If there is an excessive markup, then your payout is much lower than 30%.

Bob
 
Maikkontos said:
The prop firm pays no salary but since they are providing me with the funds to trade I keep 30 percent of any profits I reap.
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Are they charging you for training/ education? If they are it's another form of capital contribution. There are prop firms that accept S7.
 
dealmaker said:
Are they charging you for training/ education? If they are it's another form of capital contribution. There are prop firms that accept S7.
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they arent charging for education. Its basically devote my own time and energy, which im fine with.
 
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