http://theessentialsoftrading.com/Blog/index.php/2009/04/06/paying-a-prop-trading-shop-for-training/ Information and resources for those looking to learn about trading and the markets Sat, 04 Feb 2012 14:17:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://theessentialsoftrading.com/Blog/index.php/2009/04/06/paying-a-prop-trading-shop-for-training/#comment-13900 Ikeal Thu, 16 Apr 2009 17:06:13 +0000 http://www.theessentialsoftrading.com/Blog/?p=1143#comment-13900 Prop firms just seem like a bunch of fees, fees, and more fees. My rec to someone coming out of college looking for a trading career is to not bank on becoming a prop trader. So many young graduates are enthralled about the idea of attaining the title as being a “trader.” Dont buy into it. Nothings for free and fees are a very sneaky and deceptive way of making seemingly little costs add up to a whole lot. Dont want to talk too much smack about prop firms, but I am just very weary of them (never traded with one but thought about going for an interview after being turned off by the recruiters evasiveness about the firms policies and capital contribution requirements. Look to be traders who are MARKET MAKERS, not “Proprietary.” Market making is where its at, taking orders from hedgefunds, matching buyers and sellers and YOU earn commission. These prop firms, with their splits, desk charges, commissions, fees, etc etc. on and on and on with nonstop fees. Lets face it, these prop jobs are not hard to get AT ALL, if you show one ounce of eagerness to throw down money for a prop firm you’ll be hired in a second. Also, working for some sketchy-ass firm named “chronic trading” certainly will not look fabulous on a resume either. Job security? NONE. God do u know how much pressure you would be under EVERY SINGLE DAY with NO salary and banking solely on commission to pay for rent and dinner?? That is way too much for a recent grad to handle and one not need to suffer such job-INSECURITY. You are merely paying prop firms to use their leverage. It’s a deal, not a job. Take the job at Citi as an operations analyst or a trading assistant ANYDAY over some BS prop trading position. Would look SO MUCH better on a resume as well. Just my 2 cents. Prop firms just seem like a bunch of fees, fees, and more fees. My rec to someone coming out of college looking for a trading career is to not bank on becoming a prop trader. So many young graduates are enthralled about the idea of attaining the title as being a “trader.” Dont buy into it. Nothings for free and fees are a very sneaky and deceptive way of making seemingly little costs add up to a whole lot. Dont want to talk too much smack about prop firms, but I am just very weary of them (never traded with one but thought about going for an interview after being turned off by the recruiters evasiveness about the firms policies and capital contribution requirements. Look to be traders who are MARKET MAKERS, not “Proprietary.” Market making is where its at, taking orders from hedgefunds, matching buyers and sellers and YOU earn commission. These prop firms, with their splits, desk charges, commissions, fees, etc etc. on and on and on with nonstop fees. Lets face it, these prop jobs are not hard to get AT ALL, if you show one ounce of eagerness to throw down money for a prop firm you’ll be hired in a second. Also, working for some sketchy-ass firm named “chronic trading” certainly will not look fabulous on a resume either. Job security? NONE. God do u know how much pressure you would be under EVERY SINGLE DAY with NO salary and banking solely on commission to pay for rent and dinner?? That is way too much for a recent grad to handle and one not need to suffer such job-INSECURITY. You are merely paying prop firms to use their leverage. It’s a deal, not a job. Take the job at Citi as an operations analyst or a trading assistant ANYDAY over some BS prop trading position. Would look SO MUCH better on a resume as well. Just my 2 cents.

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