why trade prop when you can retail daytrade futures with same 20:1 margin

It's not only about futures.

Nowadays, you can day trade almost any instrument through a CFD company with the same leverage as a prop firm.

They even pay you interest if you short!

Both offer about the same leverage in stocks, indices ETFs CFD.
10X to 20X...

For CFDs, you keep all your own profits. No middleman fees & prop firm gurus to interfere.

So whats the advantage of trading thro' a chopshop when you can trade with a bucketshop?

:confused::cool:
 
I dont understan what you are saying.
Post examples of the exact leverage and comission. COmpare with the props. I imagine prop have a better offer.
 
Quote from Diego11:

I dont understan what you are saying.
Post examples of the exact leverage and comission. COmpare with the props. I imagine prop have a better offer.
More...

CFD are very expensive.
0.02 per share on US shares.
0.1% on european shares
on igmarkets.co.uk, wich has the best offer.

excellent for trading on the daily,
but useless for day trading.

leverage is 20X, or even more if you have stops. thousands of stocks available.
 
Quote from virtualmoney:

It's not only about futures.

Nowadays, you can day trade almost any instrument through a CFD company with the same leverage as a prop firm.

They even pay you interest if you short!

Both offer about the same leverage in stocks, indices ETFs CFD.
10X to 20X...

For CFDs, you keep all your own profits. No middleman fees & prop firm gurus to interfere.

So whats the advantage of trading thro' a chopshop when you can trade with a bucketshop?

:confused::cool:
More...

Pardon the ignorance, but what is a CFD company? Examples? Links? Tx
 
To the best of my knowledge, Americans cannot trade CFDs. You'd probably have to form an offshore company, etc to get around these rules. Probably not worth it for most. Stick to options and futs.
 
I would hope most are trading the insturment that they know the best not what gives them the most leverage.
 
Quote from jammy page:

After considering trading prop for some time now, I don't understand what the real appeal is given that you can retail daytrade futures with basically the same 20:1 margin that the average prop firm will only give you under very limited conditions AND if your trade fits within their strict risk parameters?

Also, trading futures retail you would seem to get a much better deal on commissions than the starting commissions rate that I hear is standard for the more respected prop firms.

Also, no silly series 7 licensing requirement needed to retail trade futures.

Also, much more favorable 60/40 tax treatment for futures than for most stocks (although some ETFs may qualify for the same treatment).

Finally, I am very mindful of the fact that at least 75% of the average individual stock price movement is determined by the overall market, and that you can trade the overall market movement with futures.

So what am I missing?

(I know there are some pseudo-market-making, "opening order" and other strategies that are unique to stock trading, but I don't see myself really getting into those anyway. Also, I'm not really looking for someone to train me or let me in on their "winning strategies," and I certainly don't want a big brother monitoring mine.)

Thanks for your thoughts.

Jimmy P.
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I am also considering joining a prop firm, your post may change my mind. If trading futures is the alternative to getting leverage in a prop firm, why go through the trouble of Series 7 and other tricky stuff?

My problem is I never traded futures before. I guess it is the same as trading the index, only bigger in scale, right?
 
Quote from 4DTrader:

I am also considering joining a prop firm, your post may change my mind. If trading futures is the alternative to getting leverage in a prop firm, why go through the trouble of Series 7 and other tricky stuff?

My problem is I never traded futures before. I guess it is the same as trading the index, only bigger in scale, right?
More...

Please don't answer my questions, which are rhetorical.
 
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