Prop Futures

quote from Jayford :

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.
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Most prop firms have low per trader overhead, thus many are not interested in giving their traders the same high end equipment that many traders buy for themselves.

Although I agree ... it would be nice to be around some really smart, successful traders.
:cool:
 
I was talking to someone from Advanced Futures and heard they might be opening up one in Florida with some top Chicago and NY traders.
 
Quote from downtickboy:




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.
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Greentree only takes a cut if you trade less than a 10K account. Echo now offers futures as well. There are firms slowly but surely offering futures on the same model as Bright, etc (no risk to firm, no fee from profits). I refer to all trading firms as prop, just different models, so sorry for the confusion. The firms I have spoken with could not match my costs, but they also took no cut of profits. I do low volume (about 20 turns per day), so they can't really cut me a low cost deal. Scalpers could probably get low cost AND keep all the profits.

If you know how to trade, why would you want to give up a percentage of your profits? Makes no sense to me.

Jay
 
Prop Futures is the last "Real Deal" out there. Chicago is leading the field with NY just starting to develop a good program.
San Francisco has not yet caught on. The west coast needs to catch up and allow Professional Traders the ability to trade futures utilizing these member rates. I know of one group from the Bay Area that is starting to back these traders. The Eurex and CME have the "edge" going and will attract the talent from the equity prop groups...which really are just commission houses. The methodology that these Future Prop Shop employ is the difference and that introduction is everything in this business.
 
How can a trader who joins as a member of a prop futures firm avail themselves of lower rates (member clearing rates)? Doesn't every one have to lease a seat or own a seat in that exchange to get member clearing rates? I think futures exchanges don't allow "piggybacking" wherein 1 firm leases 1 seat and every member of that LLC can get member rates?

Thanks
 
Quote from GATrader:

How can a trader who joins as a member of a prop futures firm avail themselves of lower rates (member clearing rates)? Doesn't every one have to lease a seat or own a seat in that exchange to get member clearing rates? I think futures exchanges don't allow "piggybacking" wherein 1 firm leases 1 seat and every member of that LLC can get member rates?

Thanks
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I think the loophole is that you need to be treated as a real employee not a leveraged retail trader.
 
that still doesnot make sense unless rules have changed at the exchanges. I was a memeber of a prop firm that trades ont he floor. I put up $0 in return for 50% profit split. We had 5 traders in oil, 2 on gold,etc and all of us had to get seats. If it was'nt structured that way, seats at these futures exchanges would be much lower than they are now since everyone would be piggybacking.
 
THIS IS A RUMOR...... iwas told this but cannot verify it.....some small seat lessees do allow small groups of people to "clear" thru them......obviously this is bending the rules so doubt that anyone will advertise this
 
call me crazy if you want, but all the stock prop/pro firms want are a bunch of churn monkeys.

If the futures guys are making their money off your PROFITS and not your fees/commissions, then its possible that they aren't scams. I have yet to see anybody prove this point however.
 
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