Prop trading for new grad, no salary
Hey, i had a question about a small prop trading company that I applied to. They have specifically stated that there is no salary and my pay would be 100% performance based. I will be gradding next year and my only trading experience is for my own personal account. suppose I get the position, how would I be able to sustain myself for the first few months if there's no salary (it's in NY)? I believe they have some sort of training program and during this time i dont anticipate making much (if any) commission. would they have some sort of stipend until a brand new trader gets the hang of things? how is this process normally done?? thanks.
Try New York First Securities, they are a great prop shop and offer a salary base of $55k to start out with.. check out their website and training program section.
was wondering if this firm or if you knew of one that offers a decent payout with reasonable platform fees an let you get on with 10k without a series 7? im looking for a prop shop that will let me trade remote, dont care about compensation, 100% performance based is what im looking for.
Thanks, Isaac
***Correction, it is First New York Securities LLC
Thanks for the info. but actually, I still want to know specifically about companies like the one I applied to that offer no salaray, 100% performance based. is it exactly how it sounds??? thx
i am concerned about the same issue. there's a firm who is offering me a position but i must provide my own capital and they will allow me to leverage 20:1. is this some sort of scam?
What is this, Boiler Room?!? If you want to be a good trader go work for a sell-side firm first. You'll learn a hell of a lot more, be exposed to a lot more than, and become a much better trader overall.
And if you think you have a clue about how S&T works from trading your own accounts then you are sorely mistaken. It really helps to see the types of trades that go on at a bank--you'll see not only the flow side, but also complex, very structured deals that you will never see on the buyside, and will certainly not see at any chop shop that won't pay you a salary your first year.
hodeez, that sounds like the type of deal you'd get on one of these Forex sites... what's the company actually offering you besides a desk in an office building?
If a prop-trading firm is 100% performance-based right out of undergrad, then it's kind of sketchy. It's absolutely a scam if you have to provide your own capital, as their profit comes from screwing you on transaction costs.
First New York is actually a very good firm to work for. At my last summer we were doing a deal with them, and they're a legitimate prop trading group with a pool of around $300 million. It's actually more on the rare side that they offer prop positions for undergrad analysts(although they do have a regular small class), they tend to favour recruitment directly from BB prop desks & hedge funds. For the first 2 years, you're tutorship is basically the same as an S&T analyst so that you get a feel for taking on risk and all that other stuff.
If a prop-trading firm is 100% performance-based right out of undergrad, then it's kind of sketchy. It's absolutely a scam if you have to provide your own capital, as their profit comes from screwing you on transaction costs.
First New York is actually a very good firm to work for. At my last summer we were doing a deal with them, and they're a legitimate prop trading group with a pool of around $300 million. It's actually more on the rare side that they offer prop positions for undergrad analysts(although they do have a regular small class), they tend to favour recruitment directly from BB prop desks & hedge funds. For the first 2 years, you're tutorship is basically the same as an S&T analyst so that you get a feel for taking on risk and all that other stuff.
the name of the company is AMR capital trading, apparently a subsidiary of RBC professional traders group. I've googled them and cant find anything about them...kinda sketchy indeed. has anyone heard of them?
do any prop firm offer summer internships for juniors?
If so what kind of compensation can I expect?
there is a difference between a proprietary group at an investment bank and a proprietary shop. the group at the ib invests the banks assets to make them money. among proprietary trading shops/groups there are two types. 1st is one that invests its own money, is more prestigious, has salary/training/etc. the second is a daytrading firm, they just need numbers. they dont care about you, and youll either succeed or fail... i would worry that going into the last type of group would limit your options, if you swim great, but if not how would you get a job somewhere else if you failed at trading already?
thanks for all the comments. they will greatly assist in my decision making. titanboxer, i understand what you are saying that if i fail right off the bat, it will be harder later on to find another job. how does it differ if someone fails at trading in the prestigious ib? does the fact that they have a big name ib on their resume trump their poor performance?
its more that you have a two year training period, where you wont get a book until you are "ready." some of these day trading firms have like a one month "training" period. are you kidding me? So if you fail trading later at a bb i don't really know what you do. jimbo covered it once on here but i forgot what he said. you have to think more about being viewed as a potential asset or a customer to the company you work for.
Like I said before, First New York also has a two-year training period, and I'd imagine most legitimate prop-trading shops would do so also.
i see. thanks for all your comments.
right, there are two types of "prop firms" base salary and training program in excess of 18 months are good things to look for
those things are scams
Bright Trading allows you to remote trade, if thats what you're looking for.
Are you saying they give equity mutilpiers to new traders, without having gone through 'their' system first? That seems like a bad business plan.
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