Should Arcades be called prop firms?

[prc117f]

It seems a good chunk of what is called “Prop Firm” are really arcades where you pay to play and the profits are in collecting fees.

To me a Prop Firm means having to be licensed become a member of the LLC and you put up risk capital but you trade the firms capital which you are a part of.

I wonder if it would make sense to split this area into Prop Firms and then Arcade firms.

 

[poopy]

Arcade is a Brit/EU thing, isn't it? We lump all legit and "deposit prop" in the same forum so I agree. The problem is that only a handful here have experience with legit firms like Quad, FNY, etc., so the forum would be tumbleweeds.

 

[ajacobson]

Jefferies still operated three arcades as of the end of 2023. Plus, they are a strong derivatives boutique.

 

[trade4succes]

Jefferies still operated three arcades as of the end of 2023. Plus, they are a strong derivatives boutique.

Have been googling but can't find anything about this, can you share a URL or something?

 

[Laissez Faire]

A fellow Norwegian boasted about being massively funded with investors in Texas. Turns out he was paper trading with Apex. LOL.

 

[ajacobson]

Google search trading arcades or hedge fund hotels. If what you're looking for are names and addresses try a Bloomy.
https://www.google.com/search?q=tra...MwMzJqMGoxNagCCLACAQ&sourceid=chrome&ie=UTF-8

"Have been googling but can't find anything on this, can you share a URL or something?"

 

[Coin Flip]

It seems a good chunk of what is called “Prop Firm” are really arcades where you pay to play and the profits are in collecting fees.

To me a Prop Firm means having to be licensed become a member of the LLC and you put up risk capital but you trade the firms capital which you are a part of.

I wonder if it would make sense to split this area into Prop Firms and then Arcade firms.

I don't think the key distinction is whether you "pay to play" but rather are you trading a simulated account or a live money account?

So I would draw the line between say ApexTraderFunding where you are trading on a sim and the firm hopes you will fail, versus a firm where you are trading a live money account and thus your losses are their losses, thus they hope you will succeed.

 

[traderjo]

True Prop =Firm risks all it's own money ..traders are supported by great hardware, quant R&D etc .. No Firts risk capital and certainly no BS about paying for "test"
Second tire could be traders have some skin in the game properly regulated