why prop firms pay people to trade?
- Thread starter 0008
- Start date
hehe......yeah, its a charity.....LOL
the answer is........ your assumption that they pay people to trade is totally false.
Mondo Trader:
These are quotes from the First New York Securities website:
http://www.fnysllc.com/training.htm
Compensation and Benefits
Annual Salary --$45,000 plus benefits
Medical/Dental Insurance Coverage
Life and Disability Insurance Coverage
Retirement Planning/ 401K Participation
and http://www.fnysllc.com/faq.htm#10
For the duration of the training program (whether you are an assistant for 12 months or 18 months) you are paid a pro-rated salary of $45,000. Meaning, you are paid $3,750.00 per month for the duration of the training program.
For the first 12 month period after graduation of the training program you continue to get $45,000. However, this $45,000 becomes a draw against trading profits generated; meaning you cannot earn less than $45,000 ($3,750.00 per month) and hopefully you will earn much more.
On what basis do you suggest that these statements are false?
Do you think it would be safe to assume that Fnys must have a high success rate for the traders they train?
Or maybe their success rate percentage-wise is the similar to the other firms, but the ones that make it at Fnys must all become heavy hitters enough for them to be able to throw away $45k on the ones that don't.
Or maybe they will be out of business or getting rid of the salary soon.
Or maybe their success rate percentage-wise is the similar to the other firms, but the ones that make it at Fnys must all become heavy hitters enough for them to be able to throw away $45k on the ones that don't.
Or maybe they will be out of business or getting rid of the salary soon.
Another interesting point in FAQ #14 is that they are not a daytrading firm. With a big "NO!!!". They must be doing something different to offer a salary when most everyone else is requiring deposits from incoming traders.
Plus, I remember seeing a post just a little while back from a person that claims to have worked at Fnys that there are traders there still making $4-8MM in todays markets.
Plus, I remember seeing a post just a little while back from a person that claims to have worked at Fnys that there are traders there still making $4-8MM in todays markets.
It appears that FNYS has a completely different business model from most other proprietary trading firms.
1. FNYS pays a salary and benefits; most others don't.
2. FNYS trains for 12-18 mos.; most others don't.
3. FNYS puts its capital at risk; most others don't.
4. FNYS keeps half the trading profits for itself; most others don't.
It appears that through these very significant differences in its approach, FNYS attracts very bright trainees with demonstrated trading aptitude, provides extended professional training and mentoring, and achieves a win-win for itself and its employees.
1. FNYS pays a salary and benefits; most others don't.
2. FNYS trains for 12-18 mos.; most others don't.
3. FNYS puts its capital at risk; most others don't.
4. FNYS keeps half the trading profits for itself; most others don't.
It appears that through these very significant differences in its approach, FNYS attracts very bright trainees with demonstrated trading aptitude, provides extended professional training and mentoring, and achieves a win-win for itself and its employees.