Setting up your own Prop firm?
Has anyone ever done this?
Seems to me that you just pool together your funds and start trading - am I missing something? Is there a minimum number of traders/ level of experience required? I presume that as it is your own funds (not investors) you wouldn’t need any licences as such? If you can set up a prop firm as an individual what are the advantages/disadvantages of setting up a prop firm vs retail trader, I’m guessing tax?
Apologies if this is a stupid question, it just seems v simple, no? Bring me back to reality pls! I haven’t mentioned but I take into account overheads such as desk space newsfeeds sqwack box etc. Thanks
theoretically it shouldn't be hard incorporating and getting tax revenue set up. but just like opening your own hedge fund or w/e the problem isn't opening it. it's making a profit. so much so that it's not worth investing all that capital to incorporate and open a prop firm unless you're ready to take on that risk.
Thanks for response. I’m willing to take the risk because I was going to open a retail account in any case and it just seems to me that it might look better to have prop on my cv, rather than retail account though could be my naivety.
You need to figure out where you’re going to get the money from, need a lot of cash to make it worthwhile
Thanks for response. How much do you think realistically I need to start up? I have £30k saved in NSCI bonds (xmas money, grandparents etc). I am willing to risk it but don’t know if enough? In uk you need min £10k for futures retail account and £5k for cfds. I don’t trade options.
Yeah man just open a normal brokerage account, 30k is nothing and certainly not enough to setup a prop shop, in fact it’s not even enough to prop trade unless you’re just taking massive risk and trying to get lucky. Unless you’re the next Ken Griffin your pnl will only be enough to buy pens and paper and cover the utility bill. Sounds like you only asked this question to put it on your resume which is laughable. Don’t try to be something you’re not - if some kid ever showed up with some BS prop shop on their resume I would grill the fuck out of them on everything from their firms edge to market view etc, just a very phoney thing to do.
You open a prop shop AFTER you have a stellar and consistent track record, not beforehand lol
this is stupid...just open a trading account at InteractiveBrokers
trading underneath a corporate name that is just something you created looks dumber than trading within a retail account at a broker...i would ding you for making this decision...because it is stupid....and i've traded on various BB rates desks for 15 years...and i've been the guy who trains the junior hires.
if you told me about this...i would roll my eyes and wonder "who let this guy in here?"
appreciate it. +sb
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