I have interviewed at 4 different prop houses in NYC, mostly because I legitimately enjoyed the experience and got good ideas for future interviews from them, but I am legitimately interested in trading - there is NO way I am going to get into a BB in any capacity, I have thrown myself at them for a while and after one "gift" interview I realized that if I want to do trading, I will either have to sit on my thumb in my apartment and day trade through something like MB or ET or some other system (think, MT4 for forex, etc)... or join one of these prop houses.
The general jist of all of them has been varying take home % (anywhere from 30-70 to 90-10), they also charge an initial fee of 5500 to 15000 and call it either a training fee or capital risk deposit. Some firms hold your deposit and profits for certain time periods (sometimes years) others release very quickly.
I have read all the negative posts yadda yadda, but I am looking for 1) anyone who has worked at, or is working at one of these sorts of places, and 2) legit feedback based on my situation.
I have done a lot of demo trading on my own time because I generally cash poor. Since I just graduated, I have sold some stuff and am subletting my apartment for more than it costs me so I have enough money saved up to "buy in" to some of the lower priced firms.
The way I see it is, if they are confident enough to offer refunds (some do, some don't) they are likely worth a second look. The operations all "look" legitimate on the surface, and they obviously stand to gain from my doing well. If they have a training program, mentors, etc, I do not see how this is such a bad opportunity. I realize that if I suck I will lose my money and not really gain much in the end but if I have faith in my ability to eek out a few % a day using their capital, hardware, mentoring, training, etc, it seems worthwhile to me.
Should I accept one of these offers and give it a shot, or keep throwing myself at more prestigious salaried bank positions? I actively want to trade but not by sitting in my room alone, I stand to benefit from experience and advice of people with decades of experience.
I was under the impression that prop trading firms hired traders to trade on the firm's account. I've never heard of them charging fees from their employees or requiring deposits.
Is there another use of the term "prop trading" to mean hiring traders on more of a decentralized basis with some sort of personal risk to the traders themselves? What you're describing sounds nothing like what I've heard at info sessions.
welcome to reality............
As I'm sure you've noticed, there are degrees of legitimacy. I spent about 6 years trading at a prop firm, but never went through the "due diligence" phase because I had done business with the owner previously and knew it was a good situation.
Look at Brett Steenbarger's website http://traderfeed.blogspot.com/. Search "proprietary trading" - there is a lot of excellent info relevant to your situation.
I never looked the BB route but was interested in FNYS or Trillium and some of the other major well known prop desks. It did not work out and I decided Lynx was a good opportunity for me. Trading has been in my family and has pretty much been constantly stated to me that trading is sink or swim. Regardless of whose money is being traded it is on the individual to make it work. Lynx merged with t3 live and you have to put up 5500 for the training fee. Sounds like that is not too risky for you but that is your decision. Take into account you are not going to get an extended line of cash when you start trading so will need some money to support yourself as well. New York is far from cheap.
How did Lynx/t3 end up working out for you? Any details from your experience?
FloorPropVet - TY for the link, seems to have some good reading in it, fwiw.
If you're going to go the bucket shop route, I'd suggest going somewhere where you don't have to front money like Chimera Capital.
http://www.elitetrader.com/vb/forumdisplay.php?s=4837637eca501ad2251d9a…
Take a look at this
I blanket applied to a bunch of prop firms and so far they all want something up front, from the ones I heard back from. I only applied at chimera yesterday, I have heard good things about them (they even have benefits), we shall see if they are interested in me. But I am being realistic and dealing with what I have available to me.
I just realized what your name was referring to OP. Very nice.
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