A question regarding prop trading houses profits

[DavidCarpentier]

Hello,

I am considering joining a prop trading house but had a few questions I hope someone here may be able to answer:

- With a prop trading house, where does the moeny invested come from? Does it all belong to the owner? Or does each trader bring their own money and give a cut of profits to the house?

- How much do prop houses like Mako, MET and Marex have under management? Are we looking at millions? tens of millions? hundreds of millions?

- How does the salary structure work? I saw an article on here by Basil Kaye from MET Traders stating that 65% of the end of month P&L is split between the traders and 35% is put away for the end of year. What sort of money do these places make? Does everyone receive an equal share? Including management? Are financial statements / other financial details available for prop houses?

Thanks in anticipation of your reply

Dave

 

[gooseman]

you are confusing what a prop shop and prop house etc does.....

 

[DavidCarpentier]

you are confusing what a prop shop and prop house etc does.....

care to explain further?

thanks

 

[richi rich]

take the salary out of the question

If u bring yo own munnay - u take all the profits
If u use their munnay - u get a split (nothing under 50%. never ever. period)
60/70% - 0 - 50k or sumplaces 100k month
90% 50k+ or sumplaces 100k+

 

[Richie_A]

I recently met the head of recruitment from Liquid Capital (similar outfit to Mako who you've listed above) at one of our career fairs and he said that they pay a grad a base of £35k + bonus in the first year. But Liquid is an options market maker and not a prop outfit. There's a thread about a firm called Tibra where the salary breakdown is explained.

http://www.trade2win.com/boards/general-career-advice/26127-tibra-trading-europe-about.html

 

[richi rich]

yea they are a market maker - out of the prop model/arcade

and out of all the prop firms i forgot about Tibra, yea they seem to be the only one, or certinaly one of the very very few in uk who offer a salary. (but % split is smaller, and i believe some of it is paid via salarys....so we know we some of the salary comes from)

but if u can get into Tibra, its certianly a safe career out of all the options in prop.

 

[DavidCarpentier]

thanks for the replies...

Richie, i will loook into tibra, cheers


richi rich,

could you explain what you meant by

"60-70% 0-50k or sumplaces 100k month
90% 50+ or sumplaces 100k+"


thanks

 

[KillPhil08]

The more money you make the higher the percentage split.