Question about getting a job in a Prop Shop Trading

R

Ronjohn

HI,

I have been interested for quite some time to apply in a Prop Firm trading ETF, Options. I have been studying the Series 57 exam as well. The only problem is about four years ago I had to declare Bankruptcy. Do you think this would limit my chances to be able to trade with a firm? I would appreciate your thoughts

Thanks,

Ron
 
Interesting question. Has your credit score recovered? It is likely that if your credit score is too low, that it might limit your ability to join a true prop firm where you are an employee. As joining a prop firm where you money is 1st loss is not really a "job" because you become a partner, you might be fine. They just want your commission dollars. Until your credit score goes back up, you will have issues getting a customer portfolio margin account.

Have to tried contacting a prop firm yet to ask that question?
 
Thanks for the reply

My credit score is about 684 right now. I am working on building to 700. I have found one company Maverick Trading.. They want 5K investment to trade with them. I did E-mail Bright trading based in Las Vegas. I have not yet heard a response. I have no problem trading myself, but I would like to trade with a company so I can put the experience on my resume. Will update you if I hear anything..
 
If he's studying for the Series 57 then he's most likely joining a "capital contribution" firm where he has first dollar loss. In that case, he will simply require the following: a clean background check, the capital contribution, and a pulse.

As rmorse wrote, the firm will have you join as a "member" not an employee so I highly doubt the filing of a BK will have an impact, since they won't be doing a credit check, only a background check through DOJ.

Of course, it's best to just ask the firm if the BK filing is an issue.
 
Ronjohn said:
Thanks for the reply

My credit score is about 684 right now. I am working on building to 700. I have found one company Maverick Trading.. They want 5K investment to trade with them. I did E-mail Bright trading based in Las Vegas. I have not yet heard a response. I have no problem trading myself, but I would like to trade with a company so I can put the experience on my resume. Will update you if I hear anything..
More...

Maverick Trading is not a prop firm....
 
dealmaker said:
Maverick Trading is not a prop firm....
More...

Dealmaker,

I don't know anything about Maverick Trading. A prop firm does not have to be a broker dealer and registered with the SEC. We have clients that trade their own funds where there are more than 1 member of the LLC, and they are a Proprietary trading firm. All it means is that they trade their own funds. However, only a sec registered broker dealer can mark up commissions. I would not say that they are "safe", but if you do this with strangers at least they are regulated.
 
rmorse said:
Dealmaker,

I don't know anything about Maverick Trading. A prop firm does not have to be a broker dealer and registered with the SEC. We have clients that trade their own funds where there are more than 1 member of the LLC, and they are a Proprietary trading firm. All it means is that they trade their own funds. However, only a sec registered broker dealer can mark up commissions. I would not say that they are "safe", but if you do this with strangers at least they are regulated.
More...

Maverick Trading set up is a little different they charge a hefty training fee, once training is completed they fund you with their $ and require no licenses. You have to meet a certain performance standard to maintain good standing. Bright on the other hand is a broker/ dealer and capital contribution accepting type prop, require S7 and clear through Goldman Sachs.
I am not advocating or in opposition to either firm just pointing out the differences.
 
You cannot join a JBO with a bankruptcy.....period. End of story. No exceptions. So that eliminates Bright and a few others in the regulated world. In the non regulated world, well, caveat emptor. As for employee type firms, no way, this business is just too competitive. You guys really need to be careful out there. Your credit is your bond. This entire industry is built on the premise that should you ever incur a debt, it will be repaid. Believe it or not, this industry holds traders who blow up entire firms and hedge funds in higher regards then those that reneg on their obligations.
 
Maverick74,

You can't join ever? Even after time passes and you get your credit score up? I know most broker dealers will not hire anyone with a big credit issue or IRS lean because they are concerned they will do anything to make money. But is the bankruptcy really a final, forever thing? That sounds harsh.

bob
 
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