Starting a new prop firm

[operator]

Quote from TraderSU:

Can't you open institutional a/c (in the namebod llc or partnership) with IB and enjoy low comm + 100% payout. If you have enough vol and mostly add liquidity, you may even get paid for trading. Their comm on futures are pretty good.

Just a thought. Looks lot simpler to me.

But they only get 4:1 leverage. OP wanted 40:1. How will they get that at IB?

 

[wheelndeal]

The firm i trade for will be able to handle traders who want to trade solo in China or open an office. The owners are HONEST and offer competitive deals. I highly recommend this firm i have traded for 2 other prop firms in the past and have gotten burned by them. PM me if anyone is interested.

 

[propseeker]

Quote from operator:

But they only get 4:1 leverage. OP wanted 40:1. How will they get that at IB?

they're not gonna do much better as owners of a prop... good luck finding a prime acct willing to let u carry 40:1.

the leverage you see at prop firms is not the leverage the firm gets from it's prime broker or clearer. it's a result of the prop knowing that not everyone will use all the money all the time, and if they do use it all or more, that the cost of access to short term capital loans to satisfy and margin calls will still allow for profitability.

no significant capital base and no significant short term loan contacts = no prop.

 

[operator]

Quote from propseeker:

they're not gonna do much better as owners of a prop... good luck finding a prime acct willing to let u carry 40:1.

Who said anything about being a prop owner and trying to open a prime account. They can just be a subgroup of est. prop firm. This is not rocket science.

 

[TraderZones]

Quote from wheelndeal:

The firm i trade for will be able to handle traders who want to trade solo in China or open an office. The owners are HONEST and offer competitive deals. I highly recommend this firm i...

Hmm - 5 posts and anonymous - how could we possibly doubt this recommendation?

Hopefully anyone setting up something will do their research, get legal/financial guidance from major, trusted sources and not just depend on forum advice...

 

[Get In Get Out]

Quote from wheelndeal:

The firm i trade for will be able to handle traders who want to trade solo in China or open an office. The owners are HONEST and offer competitive deals. I highly recommend this firm i have traded for 2 other prop firms in the past and have gotten burned by them. PM me if anyone is interested.

Just curious in what ways you got burned by the 2 prop firms you traded with??

 

[TraderSU]

Quote from operator:

But they only get 4:1 leverage. OP wanted 40:1. How will they get that at IB?

Do people really get this kind of leverage? A future contract is itself 50x leveraged (not at IB but other places who let you trade ES for 500-1000 margin) and a leverage of 40:1 on top of that is insane. I seriously thought that it was a typo. My bad.

 

[Psub]

Quote from Agassi:

And i want to start one in India. so lets make this a global corporation with operations in china, NYC and India.

Even india has an attactive capital gain tax for the capital markets and off late many FIIS has started investing the indian capital market
let get connect so we can discuss this further

 

[alexandercho]

Oh no operator watch out. Don't start arguing with prop seeker. He is more than likely going to troll you, and end up in a long argument, for an over extended amount of time.