What type of firm would this be?

W

westsidetrader

have a quick question...

Lets say you have capital and start a firm that will trade; equities, commodities, bonds, currencies with its own capital (no investors, at least not in the beginning) And you hire 2-4 traders (to start) to trade the capital and then take a % for themselves. what would that type of firm be called?
 
i call this a prop firm. they are all over chicago. however, what most people on ET call a prop firm I would call a brokerage
 
Quote from westsidetrader:

have a quick question...

Lets say you have capital and start a firm that will trade; equities, commodities, bonds, currencies with its own capital (no investors, at least not in the beginning) And you hire 2-4 traders (to start) to trade the capital and then take a % for themselves. what would that type of firm be called?
More...

in the current context, I would call it "foolish." Few traders are going to walk in the door and make money. And ones who become successful may not work with you, or may leave you.

I suspect the more traditional, requiring a $5K+ deposit, and making $$$ in commissions/fees, whatever makes more sense.
 
Quote from westsidetrader:

have a quick question...

Lets say you have capital and start a firm that will trade...hire 2-4 traders... what would that type of firm be called?
More...
Rosy is right. We used to call that a proprietary trading (or prop for short) firm. Now we call them principal trading firms.
 
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