Prop shops with no salary?
I was casually browsing prop shops (am an experienced professional trader) and some of them offer no salary, only "performance-based compensation".
Not that I'm interested in working there, but what are y'all experiences with this kind of compensation structures?
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I don't think it's that uncommon but I have firsthand knowledge of two prop shops (both NYC based) that offer no base but 40/60, 50/50 splits purely on comp respectively. No other catches, epitome of "eat what you kill" and as far as I know, these are the highest splits you're going to find in this entire industry. People's initial response to the no salary might be negative but that's not necessarily the case, esp for experienced professionals. This was as of 2018 so my knowledge may be outdated.
If you asked me no base salary for junior trainees, then I might automatically assume those are chop shops.
What about drawdowns? Minute you hit -x% and you're out, or they give you second chances?
Nail on the head here. My current desk head worked at a small 15 man gas shop with his buddies that provided no insurance and like a $15,000 salary. He worked there two and a half years I believe and took home north of 2mm personally.
He was a VERY senior trader, trading gas since the 90s.
Truly a thing of the past, a structure that does not work anymore. Most people can get the upside of those old prop shops trading their own account at home nowadays. While a larger platform, will give you more resources no one is giving you 50/50 with access to those resources. Then likewise no one is taking 0 salary for not 50/50.
So more common is now, low salary with 20%-30% and promise for capital you make to be kept in.
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