Prop vs retail Forex

M

MrFuture

Please correct me if I am wrong, this is my first post afterall :), but the more I read about Prop Trading, the more I find myself re-evaluating retail forex trading.

If the only reason to go prop is to take advantage of increased buying power, why not simply trade retail forex ?

With the same 5k you would need to deposit at a Prop Trading Desk, you could open a forex account and get as much as 100:1 leverage (way too high for my taste, but you can adjust it lower if you want to of course).

You can keep all the overnight positions open that you want, no one on top of you telling you to close positions, and you do not have to give up your daytime job. Also, no fees to pay, no licenses needed, and no sharing of profits.

I interviewed recently with a prop trading desk, and they offered me 70% if I deposited 5k, 80% if I deposited 10k. They want you to be S7 licensed (I am already), no salary btw, and was promised of very high BP.

I don't know, maybe it's just me, but after comparing it to retail forex, I really do not see why I would wanna go prop.


Am I missing something ?

Thanks !
 
nope, your not missing anything. My thoughts exactly. Why not use that money and do it yourself. Thats a question i have been asking myself also. I mean the only benefit i see is that maybe you get to be around other traders you could learn a thing or two from. But you can find a group of guys doing it yourself also. there are plenty out there.
 
Agree, and I guess it's also because perhaps you can not use some of the strategies that are typical of equities, but let me tell you, some currency pairs have nice trends and are excellent for chart trading.

Plus, no worries about safety of your money since today some huge banks, like citi, deutsche bank and ubs offer retail forex.

Again, unless it was a great prop desk that paid you salary, it makes no sense to me.
 
Good luck finding any "positive expectancy" strategies in forex. That's the key, no matter if fores, stock prop, futures or retail.

Do you have an "edge"? Then just trade it!
 
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