Prop Payout Ratio

[white_goodman]

Quote from tehponage:

im afraid i didnt answer ur question, i thought ur question was just "how do you find the place"

the place is awesome in both terms. the environment is very friendly, non-hierachical and fellow traders are all supportive of one another. management is generally helpful and tolerant. turnover is minimal, as in really minimal. especially for grads. i think for the 50+ grads over the past 2.5 years only one got let go and that was because of discplinary measures. although a few did leave on their own accord.

i could be talking it up here, but personally i enjoy working for propex immensely. hope you will find the place as described when you turn up.

pretty much what ive heard from other people, 99% positive from what ive heard, wonder why turnover at the MM's is so high in comparison..

I swear when i was in there the other day a few were playing some computer strategy game around lunchtime haha

 

[swiftmike99]

Quote from tehponage:

Hi all,

what is the highest payout ratio people have seen at prop capacity, with capital fully backed by the firm and fixed desk fee. im prop trading in australia and i was wondering how the firm compares to firms in europe and the americas.

of course, im talking about senior trader payouts, not n00bs.

regards

Equity or Futures? How big the desk fee what about RT fees? Alot of factors add up to a payout. There is no free lunch anywhere. 100% with 5$ RT and 6000$ desk fee could be the same as 15% 1$RT and no desk fee. Depends on your volume and strategy.

 

[forsalenyc]

discussing only payout ratio is meaningless. there are other factors such as commission rate, volume, etc. that are definitely part of the stew. high volume traders prefer lower commission therefore split profit with the firm while low volume traders pay higher commission and take home 100%. also how much desk fee are you referring to? cuz if u find some decent satellite firms, u can get by......

 

[tehponage]

i see... because at my firm the desk fee and RTs are indiscriminantly the same for all traders, regardless of how much volume you generate or profit size.

so do other firms actually tailor (or willing to negotiate, i guess) to your trading style as such? more split, more desk and rt. less split, less desk and rt.

we do futures btw.

 

[swiftmike99]

Quote from tehponage:

i see... because at my firm the desk fee and RTs are indiscriminantly the same for all traders, regardless of how much volume you generate or profit size.

so do other firms actually tailor (or willing to negotiate, i guess) to your trading style as such? more split, more desk and rt. less split, less desk and rt.

we do futures btw.

In futures world the differences are small because of high entry cost. Depending on your desk fees your deal sounds normal. Desk Fees can range anywhere from 1500-6500$ (from my experience), and payout from 25 - 80%, most times its depended on your earning potential and length of stay at the firm. This is assuming your company isn't making any money on RT (overwrites, most are anyways few cents here and there add up for them quickly).