Browse Article

Tips for Finding the Right Proprietary Trading Firm

July 8, 2016 | Author: | Posted in Investing

Due to the growing effectiveness of the trading industry, many are shifting their preference to the trading industry. Whether they are part of the proprietary trading firms or individual traders, they have just one goal in mind and that is to earn big. All aim to flourish in the market. The trading sector promises a huge amount of earning.

Practically nothing happens if we do not have the required resource to get going, irrespective of how knowledgeable we are in a selling and buying business or how much we want to get involved in the trade business. Becoming a part of the proprietary trading firms is one of the best ways to get started in a career as a trader. You gain the required education to be able to be successful and begin your own business.

A logical question that arises is how you can know if you have joined the right proprietary trading firm. What you must expect from the proprietary trading firms in order to be effective.

Prop trading firms train individuals who want to become successful traders. Those conducting seminars and trading courses teach the technical staff that a trader must know the goals and values of a successful trader. You must educate well, if you plan to become not just a trader, but a successful one.

You must keep in mind that the prop trading courses you choose should not end their commitments the minute classes and seminars end. They must stay committed even after you have acquired all the necessary knowledge. They must assist you to jump start with your business by offering you with the initial capital so that you can get going to the earliest. They must offer you trading software intraday, direct access to the market, initial stocks and everything that you will need.

Some of the figures that can help you choose the right firm is as follows :

•  Exam Fees and Regulatory Fees : Do you want to pay for these? What licenses are required and how much time is required to study and obtain the necessary licenses.

•  Daily Minimums : Are you required to make minimum number of trades per month/day? Or are you required to trade with minimum number of shares per month/day.

•  Percentage Payout : What payout will you get? Is it after commissions fees or will it be subtracted from your percentage.

•  Software Fees : Are you required to pay for the software fees? Is the fees waived with a certain number of shares or trades per month.

•  Burrowing Fees, ECN Fees and Commissions : What will be the commission rates that you will be charged? Are the ECN fees charged/rebated or absorbed?

You can create a spreadsheet listing these values. You can list figures for each firm that you are considering. This can help you create some hypothetical scenarios :

Average gross profit per day.

Number of shares/trades per day.

Average number of shares per day.

Average number of shares per month.


This Article was written by Trevor Kloos. Visit our site at ( http:onlyaboutinvesting ) and ( http:onlyaboutinvesting/proprietary-trading ) for more details.

Article Source


I'm a Freelance copywriter.

This author has published 2 articles so far.