SEC needs to CRACK DOWN on "Prop" firms

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chewbacca

Prop = no capital contribution + licenced traders + salary

"Prop" = capital contribution + no licences + no salary....just a nice way to say retail+leverage.

Go to craigslist, hotjobs, monster.....wherever......and you have tons of 'prop' 'job' posting trying to mislead people into thinking they're applying for "jobs"

The SEC needs to BAN firms from using the word Prop if capital contribution is required....that is RETAIL.
 
Quote from chewbacca:

false advertising.....hedge funds can't do it.....mutual funds can't do it......'prop' firms shouldn't be able to do it
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Did someone call Don Bright?
 
and for the firms that do require a capital contribution, there needs to be some way of structuring it so that your deposit is secure...right now it's like the Wild West
 
yes....this is becoming an epedemic....like i said just go to any 'job' board type in trader and like 90% of the listings are for the retail 'prop' 'positions'.....did ya'll hear the rumors about yet another 'prop' firm in downtown nyc soon to be shut down.....(no pms please....I'm not naming any names or droping hints)......real prop is no capital contribution period......no salary is fine as long as payout is high......but if a firm doesn't can't even put aside 1-2k of risk capital for a trader then that mean undercapitalized firm......its just not good for the profession to have so many misleading scammers so prominently out there.
 
There should be a lot of SEC regulation throughout the entire industry. However, the SEC is nothing more then a small team of low paid government workers. They simply cannot investigate everything.

The analogy I provide is this. . .Its the Wild West with a few poorly armed Sheriffs running around. Stages get robbed everday, the banks get robbed everday, crime is everywhere. However, the lowly Sheriff and his wheel gun can only manage to get so much.

The SEC should be enlarged at least by 3 times its current size and they should be very aggressive in their enforcement.

They should first assign an SEC investigator to Herb Greenberg and Jim Cramer. Thats the first thing those guys should do.
 
Quote from chewbacca:

yes....this is becoming an epedemic....like i said just go to any 'job' board type in trader and like 90% of the listings are for the retail 'prop' 'positions'.....did ya'll hear the rumors about yet another 'prop' firm in downtown nyc soon to be shut down.....(no pms please....I'm not naming any names or droping hints)......real prop is no capital contribution period......no salary is fine as long as payout is high......but if a firm doesn't can't even put aside 1-2k of risk capital for a trader then that mean undercapitalized firm......its just not good for the profession to have so many misleading scammers so prominently out there.
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Well, back to the real world. I don't want to depress you, but there are maybe a couple of dozen "real" prop jobs out there and you ain't getting one. No offense to you personally, directed more at the ET community at large. If you have the pedigree it takes to grab a spot on Goldman's prop desk that has all of 6 traders on it, send them your resume.

My second complaint here is you asking the firm to put up 2k. What the hell will that do? No man, woman, or child in this world can trade a 2k account prop or otherwise. Look, if the guy's at Goldman who are swinging around hundreds of millions of dollars and even they are having a hard time making loot, what makes you think you are going to make jack shit with 2k?

I mean come on. Just go to a casino with all the change you can find in your couch. You will have much better odds.
 
ror, nowadays, with 5k u can get 1mln leverage and that's enough to make a decent livin' if u are good.
Quote from Maverick74:

Well, back to the real world. I don't want to depress you, but there are maybe a couple of dozen "real" prop jobs out there and you ain't getting one. No offense to you personally, directed more at the ET community at large. If you have the pedigree it takes to grab a spot on Goldman's prop desk that has all of 6 traders on it, send them your resume.

My second complaint here is you asking the firm to put up 2k. What the hell will that do? No man, woman, or child in this world can trade a 2k account prop or otherwise. Look, if the guy's at Goldman who are swinging around hundreds of millions of dollars and even they are having a hard time making loot, what makes you think you are going to make jack shit with 2k?

I mean come on. Just go to a casino with all the change you can find in your couch. You will have much better odds.
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Quote from Bitstream:

ror, nowadays, with 5k u can get 1mln leverage and that's enough to make a decent livin' if u are good.
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Not really Bitsy. Read the small print. Nobody gives you that kind of leverage on outrights. Don might give you that kind of money if you are spreading pairs or doing opening orders. But overnight? Hell no. Straight stock or futures? Hell no. LOL.

Oh and here's the kicker, when your 5k is gone.....so are you!!!!

With 1 million in exposure, I give the average guy on ET about 30 minutes before they are asked to give their building ID card back. LOL.
 
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