Prop Traders at firms like Bright vs. MBF

N

Nasdaq5048

I am a retail trader and have no idea how prop firms work. I am sure people on ET have a lot of experience on prop firms. Could someone please help me on the following questions?

1) For prop firms like bright and echo, i guess you can get a job pretty easily with some in-house training. On the other hand, Prop trader post at MBF are very competitve. I heard MBF hires a handful of traders every year. What's the difference between being a prop trader at MBF and Bright? Is it the commision? or is it the payout?

2) How does the whole money thing works? Are traders trading house money, and the firm takes the monetary risk? That means if the guy wins, he'll get a cut. If he loses, he lose nothing, then why do traders need to put up some money before they go into firms like bright? Arent they trading house's money? Is the 5k or 10k just how much they can lose before they are fired.

3) If the commision is 0.004 per share, IB could offer a similar rate too. Why do i need to go into a prop shops?


Thanks in advance
 
Quote from Nasdaq5048:

I am a retail trader and have no idea how prop firms work. I am sure people on ET have a lot of experience on prop firms. Could someone please help me on the following questions?

1) For prop firms like bright and echo, i guess you can get a job pretty easily with some in-house training. On the other hand, Prop trader post at MBF are very competitive. I heard MBF hires a handful of traders every year. What's the difference between being a prop trader at MBF and Bright? Is it the commission? or is it the payout?

2) How does the whole money thing works? Are traders trading house money, and the firm takes the monetary risk? That means if the guy wins, he'll get a cut. If he loses, he lose nothing, then why do traders need to put up some money before they go into firms like bright? aren't they trading house's money? Is the 5k or 10k just how much they can lose before they are fired.

3) If the commision is 0.004 per share, IB could offer a similar rate too. Why do i need to go into a prop shops?


Thanks in advance
More...

Please feel free to call me directly to discuss. 702.739.1393 (mid trading day is a good time).

Not sure what MBF is, when I googled it I got "Musicians Benefit Fund" and something about NYMEX, I assume you're not a musician, and are perhaps referring to Mark Fisher, whom I haven't met, but would be glad to at some point...see what is happening on the NYMEX these days. If you're referring to something else, please advise.

Regarding "why" a prop shop vs. IB, the primary reason is that it takes a $million or more to take part in many working strategies such as M&A, pairs, automated market making, surrogate specialist....opening only's, etc. And, since most people don't have that kind of money to use, not "abuse" - we provide that capital, with the same kind of PDT money required by my friends at IB (Timber Hill).

Big difference in the type of trading you can do with some capital behind you...and, the reason most business ventures fail is, of course, lack of capital.

BTW, IB is the only retail firm I have ever recommended to anyone, I think they are one of the best.

Don
 
nasdaq 5048 you ain't getting no .004 per share with bright outside doing millions a month. there .004 is after 1k shares. remember ib is an incredible .005 all in no sec fee's which few can beat. that means if your taking liquidity on the nasdaq all day long trading a stock like goog thats less than .001 taking into account no sec fee.
 
Quote from Don Bright:

Please feel free to call me directly to discuss. 702.739.1393 (mid trading day is a good time).

Not sure what MBF is, when I googled it I got "Musicians Benefit Fund" and something about NYMEX, I assume you're not a musician, and are perhaps referring to Mark Fisher, whom I haven't met, but would be glad to at some point...see what is happening on the NYMEX these days. If you're referring to something else, please advise.

Regarding "why" a prop shop vs. IB, the primary reason is that it takes a $million or more to take part in many working strategies such as M&A, pairs, automated market making, surrogate specialist....opening only's, etc. And, since most people don't have that kind of money to use, not "abuse" - we provide that capital, with the same kind of PDT money required by my friends at IB (Timber Hill).

Big difference in the type of trading you can do with some capital behind you...and, the reason most business ventures fail is, of course, lack of capital.

BTW, IB is the only retail firm I have ever recommended to anyone, I think they are one of the best.

Don
More...

Yes Don, he was referring to MBF Clearing, the largest clearing firm on the NYMEX. LOL. Man, you really are a little lost outside the world of equities aren't you? LOL. We can clear all that up over drinks when you come out here. :)
 
Quote from Nasdaq5048:

I am a retail trader and have no idea how prop firms work. I am sure people on ET have a lot of experience on prop firms. Could someone please help me on the following questions?

1) For prop firms like bright and echo, i guess you can get a job pretty easily with some in-house training. On the other hand, Prop trader post at MBF are very competitive. I heard MBF hires a handful of traders every year. What's the difference between being a prop trader at MBF and Bright? Is it the commission? or is it the payout?

2) How does the whole money thing works? Are traders trading house money, and the firm takes the monetary risk? That means if the guy wins, he'll get a cut. If he loses, he lose nothing, then why do traders need to put up some money before they go into firms like bright? Arent they trading house's money? Is the 5k or 10k just how much they can lose before they are fired.

3) If the commission is 0.004 per share, IB could offer a similar rate too. Why do i need to go into a prop shops?


Thanks in advance
More...

OK, I'll jump in here. First of all, your odds of getting in at MBF are slim to none and slim left town. Your odds of getting into Bright or Echo are better then Don letting a post about Bright Trading go unanswered. LOL.

Mark backs guys on the floor. If you think you are ready to go stand in the natural gas pit with Eric Bolling (RBI), give him a call. While it's true Fisher does have some guys trading on the screen, most of the guys are from the pits, in other words, they are former customers of his that he has a close relationship with. So it's not like an either or here. You are not choosing between Bright and MBF. You are choosing Bright.
 
(Just jumping in here, almost let a post go by, and I don't want to let Mav down, LOL).

Yeah, I'm good with the CBOE, CME, options floor guys, and of course NYSE and Naz, but we have not gotten to know anyone on the NYMEX, but I'm sure I will in the near future.

Don
 
Don,

You are still behind the Curve.......it's now going to be about SGX, Kospi, Eurex, India, South America and the new exchanges that China will be bringing online.

The ICE is doing well and with its spot oil and gas and the list of growing numbers on all there derivative markets will continue to pummel the sad affairs in the equity markets.

Time to go back to school and study up ...Don.
 
Quote from Don Bright:

Please feel free to call me directly to discuss. 702.739.1393 (mid trading day is a good time).

Not sure what MBF is, when I googled it I got "Musicians Benefit Fund" and something about NYMEX, I assume you're not a musician, and are perhaps referring to Mark Fisher, whom I haven't met, but would be glad to at some point...see what is happening on the NYMEX these days. If you're referring to something else, please advise.

Regarding "why" a prop shop vs. IB, the primary reason is that it takes a $million or more to take part in many working strategies such as M&A, pairs, automated market making, surrogate specialist....opening only's, etc. And, since most people don't have that kind of money to use, not "abuse" - we provide that capital, with the same kind of PDT money required by my friends at IB (Timber Hill).

Big difference in the type of trading you can do with some capital behind you...and, the reason most business ventures fail is, of course, lack of capital.

BTW, IB is the only retail firm I have ever recommended to anyone, I think they are one of the best.

Don
More...


i guess you have googled MOC and you got marriage of convenience.:D

do you do MOCs at your firm. what was the largest profit of any trader on 6/30?
 
You must log in or register to reply here.
Back
Top