I am in a similar situation to you. I had a career first in investment management consulting, then asset management operations, and hedge fund operations. Having worked at small firms I have always had some role in "front office" type responsibilities (research, junior PM, and risk management) in addition to my operations duties. I am a CFA charterholder and have some experience prop trading now. I am also looking for a firm that will not require a training fee. Because I have just purchased a house I will not be able to contribute capital up front. However, I do have a strategy and a short track record.
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Older newbies and prop trading
- Thread starter hippietrader
- Start date
Even if you have the hefty enrollment or training fees these firms charge, it is not a good idea to hand over so much money to join a prop firm. You are unlikely to see that money again even you make money for the firm. They have so many ways of keeping your money.
Read the Prop Firm section of this board and you know how hard it is your get your money back. Even if the firm is solvent now, its condition can change very suddenly.
The other consideration is that firms that charges a hefty upfront fee makes its revenue form new traders sign up, not from trading profits. In other words, they don't care if you lose all your money, they make money you win or lose. Instead of helping you succeed, they get rid of you when you lose half of the fees you paid them.
Their goal is to get a constant supply of new traders willing to pay their upfront fees. They care very little for the success of the traders who are already with the firm.
Find a firm that makes money only when you make money!
Read the Prop Firm section of this board and you know how hard it is your get your money back. Even if the firm is solvent now, its condition can change very suddenly.
The other consideration is that firms that charges a hefty upfront fee makes its revenue form new traders sign up, not from trading profits. In other words, they don't care if you lose all your money, they make money you win or lose. Instead of helping you succeed, they get rid of you when you lose half of the fees you paid them.
Their goal is to get a constant supply of new traders willing to pay their upfront fees. They care very little for the success of the traders who are already with the firm.
Find a firm that makes money only when you make money!
Quote from monty21:
I just started at my second firm where I did not have to contribute any capital... nor am I responsible for any losses. I'm 23 though.
There's tons of firms in Chicago where you don't have to put up any capital. A lot of them deal with option market making though. Stock firms do exist. These firms tend to be more competitive too. A math or computer science degree helps, but is not required.
Could you tell me the best way to find these options market making firms? I tracked down a list of CBOE MM members but prefer to narrow my search rather than call.
Also reputations: any idea of source for the business style of the different options market making firms?
Thanks,
This link might help with regards to a list of firms. I just found it with a quick search for "Ronin Prop Firm". I am a greenhorn so by no means do I know anything about these firms etc.!
http://www.daytradingpropfirms.com/
Best of luck!
http://www.daytradingpropfirms.com/
Best of luck!