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Prop Futures
- Thread starter sammybea
- Start date
Quote from okwon:
Are these firms difficult to get into? Do they look for high credentials? Or are they similar to the equities prop trading firms where they let most people in and let the market do the weeding out.
Some are difficult to get into. I don't know about the creditials question. Some prefer trading experience and others prefer you do not have any experience trading. Best thing might be to do some research and have a list of firms, contact them, and then plan a trip out there to interview with as many as you can. Some trade bonds, some emini, some Eurex, ect. That I guess is some of the advantage that they can basically stay open all hours because the futures cover so many markets and time zones.
Any idea where I can get a list of these firms? I tried a search on proprietary trading futures, but it doesn't produce much. Also tried a search of the names downtick boy gave, I guess most of these companies are not big on having a web page. Any other sources of contact info out there?
Quote from downtickboy:
Tradelink, Matrix trading, and then there is another one but I don't know the name of the firm. GHCO also has a prop group that is suppose to be really good too.
What hae you heard about these firms? What have you heard about GHCO? Does Tradlink and Matrix Trading pay a salary like GHCO supposedly does? Thanks
Quote from TruthSeeker247:
What hae you heard about these firms? What have you heard about GHCO? Does Tradlink and Matrix Trading pay a salary like GHCO supposedly does? Thanks
Pretty much what I know about GHCO was covered in the other thread. Tradelink does pay a salary but I think it is like 30K, but I think because of this you get a worse payout deal at first and a longer lock up. From what I know they trade mostly the Eurex and US bonds and soon will be adding eminis. I have heard both things about Matrix that is does and does not provide some kind of draw/salary. The people I know there mostly do high volume scalping in Chicago of all the futures - eurex, emini dow, es emini, ect. They have some good traders there.
By the way there is a guy on the board from Fastfill that named some other prop futures firms on a previous thread about this subject. I think his name was Risk less.
IMO prop futures can work if the prop company could provide some things that the individual trader needs in order to be successful. In other words, fast, reliable data, charting and software programs, high-end computer setups, low commisions, etc.
Make it attractive for the trader to want to trade for a prop group.
Make it attractive for the trader to want to trade for a prop group.
Quote from sammybea:
I am very interested in prop firms that trade futures in the nyc area. I don't mind paying a slightly higher ticket charge for the ability to trade with more contracts. I am willing to put some of my money up.
Take a look in the NY Times Sunday paper, I saw a couple of ads this past week. Also do a search in Monster board - keyword futures trader. A few nyc firms show up.
However unless money is an issue, you're always better off not going prop.
Why are you better off not going prop?
Quote from knowledgebone:
Why are you better off not going prop?
More expensive generally.
With the massive leverage available to retail futures traders, you do not need the buying power offered by a prop firm unless you are seriously short on capital to begin with. In this case, you would require a system where the prop firm takes all the risk, and a % of profits.
That said, prop firms make sense if you need the training. They can also be beneficial simply because you have others trading next to you. I would consider trading prop if they could match my current costs (they can't). I would prefer to trade with an office full of traders.
Jay
Quote from Jayford:
More expensive generally.
With the massive leverage available to retail futures traders, you do not need the buying power offered by a prop firm unless you are seriously short on capital to begin with. In this case, you would require a system where the prop firm takes all the risk, and a % of profits.
That said, prop firms make sense if you need the training. They can also be beneficial simply because you have others trading next to you. I would consider trading prop if they could match my current costs (they can't). I would prefer to trade with an office full of traders.
Jay
The only form of prop futures that I have heard of are the ones where they take the risk and you put up no money but give up a percentage. If that is not the case then it really is not prop. You are right there is no reason to do the Bright/Echo form of prop because it does not take much money to get going in futures. I am sure these prop firms can blow your current costs away for ES because a lot give their traders the low exchange rates but in return you give up percentage. They are trying to make money off of profits not necessarily the commissions.