Are proprietary trading firms on Wall St legit?

This firm is located on Wall Street, I had an interview they basically asked me about stock trading history and pitch them a stock and analyze it, the usual stuff... Couple of hours later they e-mailed me saying I was qualified for the training program (requirement for break-in for the internship which eventually lead to full-time based on performance)... So basically pay $1k for the training program and then if I pass the exam, I get to either become a Financial Analyst 92+ score or Prop Day Trader 85+ Score... Interning for 2 - 3 months (paid), then based on the performance I would get hired full time or not...

I don't know I just didn't think it was this simple? Is $1k for 5 days of training too much? or too good to be true? I mean it the covered material looks extensive based on the link... And the only reason I think it's not a scam is that the paid internship would easily cover the $1k for the training no? (Unless I fail on my part and bomb the exam)...

And also is this legit to be able to trade without take any FINRA licensing exams?

So to summarize...

-$1k for 5 day training program which results in final exam if passed, gets paid internship (maybe eventually leading to full-time based on performance)
-Trading using company's assets
-It's on Wall Street
-It doesn't require any Series 7/series 60's exams...Just the qualification exam at the end of the training session
-No deposit necessary as far as I know...
-I heard from a source that the trading software itself might be expensive...

So I'm just asking any experienced prop day traders to assess these aspects to see how legit this firm would be?

EDIT: The company is called Explore Trading Capital, and on their website has a tab called training programs and under stock professional trader it explains all the topics covered for the training...I personally think it's an extensive list, or am I just an amateur?

Comments (34)

Aug 3, 2012

The company is called Explore Trading Capital, and on their website has a tab called training programs and under stock professional trader it explains all the topics covered for the training...I personally think it's an extensive list, or am I just an amateur?

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Aug 3, 2012

any prop trading firm that forces you to put in your own capital is shit

Aug 3, 2012
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Get busy living

Aug 3, 2012
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Aug 3, 2012
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

"Well, you know, I was a human being before I became a businessman." -- George Soros

Aug 3, 2012
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

I hate victims who respect their executioners

Aug 3, 2012
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Aug 3, 2012
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Aug 3, 2012
Husky32:
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is awesome

I didn't say it was your fault, I said I was blaming you.

Aug 3, 2012
Husky32:
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Aug 3, 2012
mb666:
Husky32:
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Aug 3, 2012
JeffSkilling:
mb666:
Husky32:
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Aug 4, 2012
Nabooru:
JeffSkilling:
mb666:
Husky32:
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Rise early, work hard, strike oil.

Aug 5, 2012
ChEM3:
Nabooru:
JeffSkilling:
mb666:
Husky32:
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is shit

Aug 9, 2012

Sounds sketchy to me

Sep 27, 2012
qweretyq:
ChEM3:
Nabooru:
JeffSkilling:
mb666:
Husky32:
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is the shit

Sep 27, 2012
Macro Arbitrage:
qweretyq:
ChEM3:
Nabooru:
JeffSkilling:
mb666:
Husky32:
turtles:
BlackHat:
SirBarney:
UFOinsider:
ky0ung:

any prop trading firm that forces you to put in your own capital is the shit

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Aug 3, 2012

It is more of an arcade or bucket shop than a prop shop. The grand is so that they can cover their own cost of 'training' you. They will push all of the costs down on you. Skip it and move on. This is legit, but totally f'd up. And nobody on the street will take your career move seriously.

You don't need a FINRA license to trade. The licenses are geared to sales practices and B/D types. But if you do get into a shop, you might want to look into getting one.

Aug 3, 2012
Gomez Addams:

nobody on the street will take your career move seriously.

Yes. I know exacly one guy that went from these types of shops to a legit firm, and he was good, I mean KILLLING IT. You're better off as a trading assistant, at least you'll learn something and get a shot at a good desk.

Get busy living

Aug 3, 2012

Hmm so how would one go about getting into one that doesn't require personal capital? And what would it be like? They train you for free and then you work there?

Aug 3, 2012
SkepticalOptimist:

Hmm so how would one go about getting into one that doesn't require personal capital? And what would it be like? They train you for free and then you work there?

They train you and they pay you then they hire you and they pay you more. It's like a normal human job.

I hate victims who respect their executioners

Aug 4, 2012
BlackHat:
SkepticalOptimist:

Hmm so how would one go about getting into one that doesn't require personal capital? And what would it be like? They train you for free and then you work there?

They train you and they pay you then they hire you and they pay you more. It's like a normal human job.

Aug 4, 2012
SirBarney:
BlackHat:
SkepticalOptimist:

Hmm so how would one go about getting into one that doesn't require personal capital? And what would it be like? They train you for free and then you work there?

They train you and they pay you then they hire you and they pay you more. It's like a normal human job.

Get busy living

Aug 4, 2012

http://www.exploretradingcapital.com/career
This is probably the sketchiest company I have ever seen. Looks like a cross between JG Wentworth and JT Marlin.

Also n'thing the statement that you should never pay to work somewhere.

Dec 4, 2012

It is sketchy. Check Glassdoor for more on Explore Trading Capital. From knowledge of the CEO's poor integrity, I can assert that even some of the positive testimonials are by him or directed by him.
It's a 1-5 person company (with a revolving door for the last couple years with new employees coming in constantly on a temporarily basis and leaving, save the owner/CEO).
The 1K class is taught by him and I know some friends who took it and felt like it was an absolute waste and taking advantage of international students who were very eager for a job and sponsorship, enough to pay $1K cash or money order. The promised internship is not given to everyone, even after most pass the exam. Not to mention the internship is unrelated to the trading. It's an Account Executive or loan officer and one's 'salary' is commission based. If you have a degree you can do much better elsewhere, please don't waste your time at Explore Trading Capital.

At the very least, please check the contracts you receive carefully before signing up for anything, so you can legally protect yourself.

    • 1
Best Response
Dec 4, 2012

Prop shops: How to discern legit jobs from scammy arcade type places? (Originally Posted: 02/06/2013)

Is this a good list?

Legit organization (Jane Street/Optiver type):
1. Will pay you a salary (probably not necessarily a Jane Street salary... but a salary)
2. Does not require any kind of deposit
3. Will not charge you fees. Their pay is a cut of your P&L
4. Will provide you with actual training (that you aren't paying for)

Shady/Scammy organization:
1. No salary
2. May require a deposit
3. Lots of fees in addition to P&L cut
4. Training is frequently on your own dime and may or may not be useful

The former are more like actual jobs, the latter are more like organizations charging you for a service and kinda scamming you. Closest thing I can think to compare would be a legit traditional university vs for profit places like ITT Tech/University of Phoenix. In the former you have a very good shot of doing quite well for yourself, in the latter you will probably make peanuts and quit within a year or two.

Does this seem accurate enough?

    • 2
Dec 4, 2012

No. The latter ones aren't necessarily scams. The truth is you can't pattern trade unless you have $25,000 and they provide you leverage and inexpensive routes. Some of them are scams, but groups like WTS are legit. Let me know if you get the same ECNs, commissions, leverage, etc on your IB account or whatever you use. I'd be shocked. You also keep 99% of what you make. At a salaried firm you might get 20% and how much you get depends on how well everyone else is doing.

Dec 4, 2012

If you get a salary NO MATTER your performance, as well as regular holiday pay, some sort of benefits (maybe), then its not the worst deal IMO.

Dec 4, 2012

A lot of the top prop shops pay high-5 to 6 figure salaries, have free food, and give you nice benefits/vacation. I'd guess there are fewer than 20 of these types of shops.

Dec 4, 2012
balladechina212:

A lot of the top prop shops pay high-5 to 6 figure salaries, have free food, and give you nice benefits/vacation. I'd guess there are fewer than 20 of these types of shops.

Here in Chicago there are lots of small ones. The ones that are still doing well generally have a diverse background of skills and everyone works with each other sharing research, code, and working as one unified book.

We're about 12 people. Salaries are quite nice. One person funds the whole operation and pays out.

Dec 4, 2012

i'd say that's an accurate list. if they can afford free food you know its good. if no free food + crummy carpet, dingy drywall, and office max furniture, run!

Dec 4, 2012

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Dec 4, 2012