March 15, 2016

What is a proprietary trading firm?


Proprietary (prop) trading firms are characterized by using company capital to make trades. What sets prop firms apart is that they make and lose money directly from trades rather than from commissions and rebates on trades, as is common with most brokerages. Prop firms seek to build strong trading teams that use sound strategies to consistently beat the markets. They have the potential to reap some of the greatest rewards in spite of high-risk exposure.

Proprietary firms have been challenged throughout time to adapt to the constantly changing markets, as can be noted with the demise of Citibank’s trading team in 2016. Their strategy was based on collateralized mortgage obligations (CMO) and could no longer profit as a direct result of the 2007-2008 financial crisis. You will only ever hear about a prop team after they go bust because they will never tell you their secret to success. Big proprietary names such as Getco and Optiver have been seen dating back to the early 2000’s. It seems likely that adaptability to the changing markets, regulations, and technology are common factors in firms who have remained profitable over time.

trader2B (t2B) is a proprietary trading firm

trader2B (t2B) funds day traders with company capital much like all other prop firms. What sets t2B apart is that it has traders from all over the world, called ‘remote traders‘. Established in 2006 by few highly successful day traders and headquartered in Montreal, Canada, trader2B has taken a new edge on the day trading scene.

They incorporated online trading technology to meet the demands of an ever-changing, global market. The unique aspect of the t2B program is that it has been known to accept traders without any extensive background check or an all-star trading record. Experienced traders and newbie traders alike have the chance to prove their trading skills by achieving three hundred trades, 1000USD, and the Sharpe ratios needed for sizeable boosts in buying power. At the completion of the trader2B Evaluation, traders leave behind one thousand dollars to go into the company’s risk pool. The risk pool covers other trader’s losses.

Traders who have completed the Evaluation are provided the opportunity to really profit and make a reliable income. To profit with trader2B, traders must have net profits that exceed the cost of the Trader’s Package. Every trader subscribes to a Trader’s Package including, 25000USD real money, a high-end trading platform called, Haywood Trader, NASDAQ level 1&2 data, Traders Reports, and Evaluation/Payout.

trader2B encourages individual trading strategies, all while establishing a trading community. The firm never asks traders to compensate for losses, giving many people access to a trading platform with real money. It seems that trader2B benefits newbie traders as a place to learn hands-on, and prop traders looking to join a powerful team.

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