Thread: What Brokers do Prop Trading Firms use?

Another question - any idea concerning the FX Prop companies, Since you've been trading rigging trading company?

Originally Posted by ;

Just another question - As you have been trading within an equities prop trading firm, any idea concerning the FX Prop firms?

I had a prop acc in which you pay to join - trade through demo mode till you start making consistent profits in which time they provide a dwell acc and share profits. They went bankrupt, I compensated ten thousand to join YTR and the problem was and stopped working. Didn't get one cent back. My understanding is they'll use who ever they can find a good deal from that will encourage up their set.

Originally Posted by ;

Just another question - As you've been trading within an equities prop trading company, any notion regarding the FX Prop companies?

Oh, did not see this earlier.

Thought about FX props?

The ones I've seen are more of a service supplier (ie, maverick fx) in which they earn most of their income from charging for training or monthly charges for box providers or trading rooms (online chat rooms with one head trader leading the team in a live market.) People need to shell $ 2-400 out per month for the privilege of joining these companies. I just don't see the value inside myself, because the sort of trader who is worth financing with company dollars is also the type who does not need training and stays the hell away from trading chat rooms or other experts opinion. They're independent and successful . (Also keep in mind, despite paying all this for services and having them manage you, you are still the one placing up risk capital. . So you are the first person if you get hit, not these, to lose, and they take ~40 percent of your profits.

Of course, that is how most props need to act in the FX market, because they can not make much money on only a profit divide alone... it return to that retention of talent problem I mentioned earlier. A trader can find 100:1 (or much greater) leverage at a retail broker with the same transaction fees and maintain 100% of their profits... that would make them much better compensated considering they are on the hook to get total losses at a prop or on their own.

I also think if a trader can not have the discipline to mange themselves as a different, then that has to be worked in the beginning, and moving to some prop firm to cover someone else to manage you is not the answer.

Matters get better at various other areas... such as 4xprop, from what I know (spoke to them years before, no idea if this remains the case now) they don't have the monthly charges or require the trader to cover training, but they do require that you do a 'test out' period in which you risk your own capital under their IB referral to F_CM Active Trader class to show yourself. They target seasoned traders, not only. Still though, their model gets I said and if you are going to go that route, why not go with a funding alloion supplier who lets you keep control over your trading enterprise?

All that said, I'm seeing this from my standpoint for a trader who does not need a boss over my head in FX, also is looking for a deal which makes sense from a monetary standpoint.

There may be an argument for the 'training fee' and 'trading area prices' of companies such as MaverickFX for compete n00b traders who wish to ramp up fast and cut through the sound of all the terrible advice found on forums (and yes, sadly this forum is very full of terrible advice.) However, as far as I can justify that kinda setup working for one sort of trader, my mind goes back to the If someone does not have the analytical skills to learn, research, and create their own trading style from the ample free stuff on the internet, then perhaps they got to work on that first and signing to a service is not the answer.

Don't mind my rambling.


Seriously speaking, if you are really intent on the prop world, look up props which specialize in futures trading. Quite a number of them will have currency futures desks, also there are a lot of egies that props love which simply don't use to spot given the gap between the markets (spreads, disperse all the things, spreads everywhere, calendar spreads, cross market spreads, arb spreads, stat arb disperse... etc..) That a market where companies are more inclined to back you and there is not as much of a problem talent, so it is worth it for the company to spend time into traders without needing them to pay training fees.

Originally Posted by ;

I had a prop acc where you pay to join - commerce via demo mode until you start making consistent profits at which time they give a dwell acc and discuss profits. The problem was , I paid ten million to connect YTR and within a month they went broke and stopped operating. Didn't get 1 cent back. My understanding is that they'll use who ever they can find a good deal from that can encourage their setup.

Christ... that doesn't seem like they had their shit together. Really sad to hear that, especially since the supervisors taking your 10k knew full well the place was piling.

That's one of the huge risks with deposit based companies, it is not a trading account, it is a company, so you've got no protection of the funds that you put in.

More legit companies who operate a deposit, or capital contribution model, will add 1 layer of protection in place. Instead of 'paying' them they market you class B shares of their LLC, you would have no voting rights, but you would be a 'spouse' and see the health of the company, while making certain your capital contribution is used to pay clearing of trading operations, not keep the lights on. This is one of the better ways of accomplishing capital contribution / deposit stalls. . And a couple of run. . Believe MaverickFX (the case I gave in this thread) does it too.

That's not an endorsement of capital contribution fashion companies. Where you're not in a position to pay anything, finally the path is, and cash flows from them. Of course, finding areas like that are challenging, and you normally have to start with audited track records and develop a capital reserve of your profits with the company until it is possible to take any gains out. (I know a couple of futures prop firms which make you keep the initial ~$35k you create in a reserve account at the company to pay any sever drawdowns you've after. Makes things hard for someone just starting out, but maybe not a bad deal if you're not putting up your own cash.)

Thank you for your reply!

That is very Correct. The response to trading that is successfully definitely isn't going to a firm that is prop and paying someone to manage you. Although I do know 1 such trader who made this way together with Propex (futures). He started off semi-consistent, but with training and time trading, he improved and was able to be pretty consistent. However, it will make sense if the prop firm gives the trader a significant amount to trade, thus giving access to the funds to him that he ordinarily wouldn't have as a private trader. It will take a while for the trader to earn that charge with all the rigging firm, given that risk limitations and trading cap increases with consistency and capacity.

I haven tried futures before, therefore I am not sure how my egies will operate in an entirely different market.

You said that you're currently full time in an equities prop firm? Is it established in the states?

Originally Posted by ;

Oh, did not see this before.

Idea about FX props?

Those I've seen are either more of a service supplier (ie, maverick fx) where they earn the majority of their income from charging for coaching or yearly fees for box services or trading rooms (online chat rooms with one mind trader leading the team in a live market.) People have to shell out $2-400 per month. I just don't see the worth in it myself, because the sort of trader who's worth backing with company dollars is also the type who doesn't...

Originally Posted by ;

Thank you for your reply!

That is very Correct. The response to trading certainly isn't going to a firm and paying somebody to handle you. Though I do know 1 such trader who made this way with Propex (futures trading). He started off semi-consistent, but he improved and was able to be consistent. But it does make sense if the prop firm gives the trader an important sum to trade, thus providing him access to the funds that he generally would not have as a trader. That being said...

Futures really are a different animal, but the currency futures are closely linked to the spot prices they are derived from, so it's easy to pick up...

About work. . It is more of a firm that is small than the usual 'prop' in precisely the sense we have been talking about here. In all honesty, lately I have been pushed far past my comfort level by random individuals on line asking about my job (between obtaining PMs asking for information on my firm, to emails by others with their resume asking for a break. . Really...), so nothing personal but I will start being more reserved about what I disclose about it.

It is not in the United States, I'm in Toronto. They also endorsed me.

Originally Posted by ;

Futures are another animal, but the currency futures are closely linked to the place prices they are derived from, so it's easy to pick up...

About work. . It is more of a private company that is small than the usual 'prop' . To be honest, lately I've been pushed way past my comfort level by arbitrary individuals on line asking about my job (between getting PMs asking for info on my company, to emails by other people using their resume asking for a rest. . Really...), so nothing personal but I'm going to start being more booked...

Yeah from what I understand about futures trading, its mostly scalping.
Sure, you do not have to share about your job