stockbroker trainee vs. prop trader trainee

Money managers still do fine. The attrition rate for brokers is roughly the same, maybe a bit worse, than licensed traders (this from my Schwab guy who says about half leave after 6 months, tired of the selling). Obviously, the established longer term manager/broker with a good client list will still do fine..make a good middle class amount of money...but still "at risk" in my mind...layoffs, lawsuits, irritated customers and all that.

To the point of the thread...explore both, pick the one that you think you'll enjoy more, and that fits your personality...if you make a wrong turn, I have the feeling that you're young enough to change directions...and, heck, you need a Series 7 for both anyway, LOL.

Good luck in whatever path you choose.

Don
 
thank you all for the info! I am not a sales guy, nor do I see myself have what it takes to succeed there. I was just curious to see that in most prop. firm hirings they don't mention base salaries while borkers do
 
Here is the contrarian side of the argument (sorry to step on toes): many parts of trading are dying off faster than retail brokerage. Computers can perform arbitrage better than humans. Alpha and institutional advantage in trading are eroding as more players enter the arena and rules change. Most wirehouses don't cold call anymore and a job as a peon at a wirehouse, for right or wrong, looks infinitely better on a resume or mba ap than "prop trader" at unknown company. Wirehouses can open doors; prop trading will close some. The average wirehouse broker that is a few years into the biz makes more money than the average prop trader at any point. Most successful people don't have the time, the interest or the emotional fortitude to manage their own money, and that isn't about to change anytime soon.
 
Quote from Crabgrass:

Here is the contrarian side of the argument (sorry to step on toes): many parts of trading are dying off faster than retail brokerage. Computers can perform arbitrage better than humans. Alpha and institutional advantage in trading are eroding as more players enter the arena and rules change. Most wirehouses don't cold call anymore and a job as a peon at a wirehouse, for right or wrong, looks infinitely better on a resume or mba ap than "prop trader" at unknown company. Wirehouses can open doors; prop trading will close some. The average wirehouse broker that is a few years into the biz makes more money than the average prop trader at any point. Most successful people don't have the time, the interest or the emotional fortitude to manage their own money, and that isn't about to change anytime soon.
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Crab - just curious, if new brokers don't cold call anymore, how do they generate new business? Do they just sit there and wait for the phone to ring?

They still cold call quite abit - cold calling, cold door knocking, cold seminars - it's all the same stuff with a different 'cold' spin. I left the brokerage biz about 1 yr ago but still have many broker friends and the art of cold calling is alive and well my friend.
 
Quote from Crabgrass:

Here is the contrarian side of the argument (sorry to step on toes): many parts of trading are dying off faster than retail brokerage. Computers can perform arbitrage better than humans. Alpha and institutional advantage in trading are eroding as more players enter the arena and rules change. Most wirehouses don't cold call anymore and a job as a peon at a wirehouse, for right or wrong, looks infinitely better on a resume or mba ap than "prop trader" at unknown company. Wirehouses can open doors; prop trading will close some. The average wirehouse broker that is a few years into the biz makes more money than the average prop trader at any point. Most successful people don't have the time, the interest or the emotional fortitude to manage their own money, and that isn't about to change anytime soon.
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Valid points....(here's my "counterpoint"). Yes, arbitrage via computers, absolutely....very profitable....need $$ to do this...right? Who's going to take the risk? With a few $million in BP, traders can take part in the same type strategies, and actually keep the profits vs. giving all the $$ to "company". May not last forever, but entrepreneurs will live on, IMO.

And, if you're a good prop trader...why in the world would you need or care about a "resume"?

(No "rose colored glasses" - as with most things, trading takes work, training, and access to a lot of $$).

FWIW...

Don (Yes, of course I'm biased about this, but we get so many ex-brokers that I think I see a bit from both sides).

:cool:
 
Quote from Don Bright:

I obviously agree with Brownsfan above. We get quite a number of stockbrokers that want to be traders...(they are a little harder to train than those from other vocations, LOL..but that's another story).
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Don, since you are obviously informed, I'm quite curious about one thing: in your opinion, what kind of people coming from other professions gets more easily into trading?
 
Generally speaking, your broker knows as much about trading as you would expect a car salesman to know about repairing the transmission in your automobile.
 
Quote from CaptainObvious:

Generally speaking, your broker knows as much about trading as you would expect a car salesman to know about repairing the transmission in your automobile.
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Very good analogy!!! :D
 
Quote from andread:

Don, since you are obviously informed, I'm quite curious about one thing: in your opinion, what kind of people coming from other professions gets more easily into trading?
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I get that question a lot, and it's easier for me to say which professions are the most difficult (always exceptions)...and it usually gets me in some trouble (being frightfully honest causes a wrinkled brow every now and then)....

1. Stockbrokers (they think they actually know something about trading for a living, but rarely do...there are exceptions).

2. Engineers of any sort (this is where I tend to get wrinkled brows)....Engineers for the most part expect to see "the bridge fully built" before they place even one rivet into it. They tend to think that there is some formula for trading (obviously there isn't)....but, that being said, if an engineer can open their mind to training, they tend to develop great trading plans and workable automated programs.

Doctors are a bit tough as well...since they are generally "over achievers" they think they "should" be able to do something as simple as trading after a week in the saddle.

Don
 
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