Trader’s Narrative

One of the members of the discussion board elitetrader.com has created a great online resource for prop trading out there. It is still a work in progress so if you have any info pass it on to him.

Since this project seems stalled, I’ve pulled together a comprehensive list of prop shops myself.

But if you’re not familiar with the term “prop trading”, let me explain. Traditionally, proprietary trading started many years ago when brokerages, banks and other financial institutions hired traders to use their capital to trade in the markets.

That label has now been extended to traders who aren’t paid a salary and who actually put up a nominal amount of their own money. This sort of prop trader gains from the use the firms capital (up to 20 times leverage), software, training and other amenities to various degrees.

Other than those advantages, prop trading also offers a reprieve from the usual isolation suffered by most traders. Being in a positive group environment can do wonders for a trader’s development. Although, it is possible to also trade prop remotely.

If you’re thinking of joining a prop firm, start your research above but don’t forget to do thorough due diligence. And make sure you share any offer you get on elitetrader to can get feedback from other traders.

For more background information on prop trading, check out this SFO article.