2 Comments
 

Based on the most helpful WSO content, compensation at BBs for flow and prop trading in macro products is generally structured differently compared to prop trading firms. At BBs:

  1. Flow Trading: Compensation is typically salary-based with bonuses tied to desk performance and individual contributions. The bonus pool is influenced by the overall profitability of the desk, but traders do not receive a direct percentage of their PnL. Instead, bonuses are more discretionary and depend on factors like market conditions, risk management, and client flow.

  2. Prop Trading at BBs: While BBs do engage in prop trading, it's often intertwined with client flow, making it hard to classify purely as prop. Traders are rewarded based on their PnL, but the percentage of PnL they receive is significantly lower than at dedicated prop firms. Exact percentages are not specified in the context, but the structure is less meritocratic compared to standalone prop firms.

For comparison, in standalone prop firms, traders can earn a much higher percentage of their PnL, sometimes ranging from 15-30%, as noted in WSO discussions.

Sources: Q&A: Former BB Rates Trader - Now a prop trader, Q&A: BB Flow rates trader, Q&A: Former BB Rates Trader - Now a prop trader, Prop Trading Firm vs BB Trading, Advice for a 21-year-old entering BB S&T?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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