Chicago Prop Firms

[Holden42]

Hello,

I've been trading part-time on my own account for about a year and doing quite well trading options and want to understand my choices for getting more serious about trading.

- What are the names of the top proprietary trading firms in Chicago?

- Are there any firms in Chicago offering the types of prop trading opportunities where you are salaried and do not have to provide your own capital? If so, are you trading the firm's capital itself, or trading/managing other people's money through managed accounts?

- Is there a typical or desired career path or advancement path that successful at-home traders aspire to? For example: at-home part-time trader, to prop trader using some of his own capital, to salaried prop trader, to junior trader at a hedge fund, to Sr. trader at a hedge fund, to owner of a hedge fund? I just made that up as an example, I'm new to this and trying to sort this all out.

Thanks in advance...

[Alchemist]

Hello Holden42 and welcome to Trading-Lab!!

Chicago, together with New York, is one of the best alternatives when it comes to choosing "trading friendly" cities. Although, I have never been there, many traders seem to like it a lot. with regard to proprietary trading firms in Chicago, are you looking for a prop firm specializing in stocks, futures, options, or?? I'm pasting a list of the most "popular" prop shops. Many of them have branches all over the US. Your best bet is to look for those that have offices in Chicago ( if you are into stock trading I would research either Echotrade or Bright Trading), contact them, and see what they have to offer you. Some of them provide some level of training, other don't.


Although I have never been a salaried type of trader, I believe firm capital in a true prop shop setup is no different than in "regular" prop trading firm setups as we all know them where you have to deposit some risk capital. That is, it usually consists of owners and/or investors' funds which is then put up as collateral to get additional leverage i.e. buying power which is ultimately "distributed" to traders to carry on their trading activities. I have also seen situations where traders were "backed" by an outside party if the trader couldn't meet the minimum capital requirement.

choosing a trading career path is highly subjective and dependent on the traders' character traits and goals. Some traders enjoy the freedom trading from home can offer and are perfectly fine with that. On the other hand, some traders prefer to separate personal life from work life, especially if they have other family members living at home with you. as a result, they prefer to trade from an office. in addition, trading from an office gives you the possibility of meeting with other successful traders, which is a big plus, in my opinion. Last but not least, there is the "funds" thing. Some traders prefer to just trade and grow their own trading stake. Other traders are more inclined to trade other people's money. what kind of trader are you?


Proprietary Firms

• Advantage Futures - Advantage is a clearing member of the Chicago Mercantile Exchange, the Chicago Board of Trade, The London Clearing House, The Clearing Corporation as well as a non-clearing member of Eurex and Eurex-US.
• Allston Trading - Allston Trading, LLC has grown into a company with scores of employees who utilize hundreds of computers to execute derivative and cash trades around the world.
• Archelon Group - Archelon LLC is an options market maker and proprietary trader of exchange listed options, futures and equities in the US, Europe, and Korea.
• Assent - Assent is a national equities trading firm that currently serves hundreds of traders across the country.
• Avatar Trading - Trading services for individual traders and large trading groups.
• BOSS Trading - A Chicago-based proprietary trading group with a strong background in intermarket relationships and spreads, from both a fundamental and technical standpoint. Primarily focusing on European market hours, BOSS Trading has over 7 years experience in trading electronic debt, equity, and commodity futures.
• Bear Capital - Bear Capital Fund is a private fund that does not seek outside public investments. There are currently two main branches of business, in which BCF operates. BCF has a portfolio management division for its members and BCF has a proprietary trading division. BCF accepts traders for its proprietary division from all over the world.
• Belvedere Trading - Belvedere Trading is a proprietary trading firm specializing in equity index options.
• Blue Capital Group - Blue Capital Group is a privately held futures and options trading firm based in Deerfield, Illinois.
• Bright Trading - Bright Trading, LLC is a professional, proprietary stock trading firm. We have hundreds of independent traders who trade from dozens of locations throughout the United States. In addition, our "Bright-At-Home" traders enjoy the benefits of proprietary trading from the comfort of their homes.
• Capstone - Trades, equities, commodities, fixed income and money markets around the world. Offices in London, New York and Chicago.
• Cheiron Trading - With offices in Chicago and London, Cheiron is a global proprietary trading company capitalizing on superior technology and training to achieve results.
• Cy Group Trading - Our model is simple: provide top notch trading and execution services to private traders and institutions.
• DRW Trading Group - The DRW Trading Group is an aggressive, dedicated organization engaged in many different aspects of the trading industry, including market making and proprietary trading. Offices in Chicago, New York and London.
• Dimension Brokerage - Dimension Brokerage, LLC is a full service trading firm specializing in providing trading services to professional traders.
• EchoTrade - ECHOtrade is a professional trading firm dedicated to the needs of the serious, off-floor trader.
• Eldorado Trading - Eldorado Trading, LLC, is a proprietary trading firm that capitalizes on global fixed income markets— CME Eurodollars, CBOT Treasuries, LIFFE Euribor—by being the leading innovator of the electronic trading world. The founders of Eldorado have been trading electronically since the inception of screen trading in the early 1990s, giving the company an edge as transactions migrate from open outcry in the trading pits to electronic trading on the screens.
• Fusionary Trading - Fusionary uses a synthesis of the wisdom of the ages and time-tested tools to help you make more money in less time.
• Futex Trading - Futex was set up by traders who had been open-outcry trading on the LIFFE floor since 1990. In 1998 when the LIFFE floor was migrating onto computer screens Futex traders were one of the first to establish a professional computer based trading floor.
• Gelber Group - Gelber is a unique service provider for the individual professional trader, professional trading group, or institution. We have an unwavering focus on technology management and service, as we seek to expand our access to liquid electronic markets around the world. Gelber Group maintains the philosophy that clear communication and interaction bring successful trading results.
• Genesis Securities - Genesis provides a fully customizable, state of the art DMA platform Laser for the sophisticated trader.
• Geneva Trading - Geneva Trading is a proprietary electronic trading firm located in Chicago, Illinois USA and Dublin, Ireland. Focus is on electronically traded futures and equity markets in the USA and Europe.
• Goldenberg, Hehmeyer & Co. (GHCO) - Futures, Options, Trading, Hedging. Professional Trading and Brokerage at the next level.
• Group One Trading - Group One is one of the largest proprietary options trading firms in the country.
• Hold Brothers - Proprietary Online Stock Trading.
• Infinium Capital Management - Infinium Capital Management is a proprietary capital management firm with offices in Chicago and New York. Founded in Chicago in 2001, our firm was built by a core team with decades of experience in trading, software development, and financial modeling. The founders share entrepreneurial pasts, having built and sold a variety of companies and technologies both in and out of the financial markets.
• International Trading Group / DE Trading Corporation - Privately held proprietary trading firm in the northern suburbs of Chicago.
• Jump Trading - Jump Trading, LLC is a proprietary trading firm, focused on trading index futures, options, and equities. Because we are not a brokerage firm, we do not have clients. Revenues come solely from trading Jump's proprietary account.Jump Trading is a member of the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), the Chicago Board Options Exchange (CBOE), and the American Stock Exchange (AMEX). Jump is also a non-clearing member of the European Exchange (Eurex).
• Kershner Trading Group - Since 1993, Kershner Trading has been built on the idea of shared success. We are a classic proprietary trading business providing full service, support and capital to our traders, including state-of-the-art proprietary technology applications with direct access to US markets. Our traders currently trade in our Austin, Tx office, however we are always interested in hearing from groups of successful traders in other locations. Member NASD, SEC registered.
• Kingstree Trading - Chicago prop trading firm that at one time reputedly did one third of the volume in the e-mini S&P.
• Last Atlantis Capital - Established in 1998 and rapidly expanding into every major equities and derivatives market in the world, Last Atlantis Capital has offices in the US and the Bahamas and active traders in Europe, US, and the Carribean.
• Marquette Partners - Marquette Partners is a leading liquidity provider to the world's largest derivatives exchanges. As an early pioneer in electronic futures trading, Marquette has successfully developed individuals to trade on exchanges throughout the globe, including the Chicago Mercantile Exchange, the Chicago Board of Trade, Eurex, Euronext-Paris, Euronext-LIFFE and Borsa Italia.
• Optiver - Optiver is an international proprietary trading house dealing mainly in derivatives, shares and bonds. The firm has expanded from a few Amsterdam based market makers to a global arbitrage group with subsidiaries in Chicago and Sydney.
• Peak6 Trading - One of the largest equity options market-making firms in the U.S.
• Prestige Capital - Proprietary trading firm for stocks traders. Offers remote trading.
• Refco Trading Services - Based on REFCO's acquisition of MAC Trading Services, LLC a London based electronic trading company; REFCO Trading Services was established, which has commenced operations in North America. Now part of the Man Financial Refco Division.
• Ronin Capital - Proprietary trading operations covering a variety of markets including equity securities, government bonds, corporate bonds, and related derivatives on global exchanges and electronically.
• Schonfeld Group - Schonfeld Securities, LLC pioneered the short term trading industry when it began operations in 1988. It is one of the largest U.S. proprietary equity trading firms in terms of number of traders and volume traded on the NYSE and NASDAQ.
• Simplex Investments - Chicago based off-floor proprietary trading firm focused on the active trader.
• Spot Trading - Spot Trading is an off-floor trading firm specializing in equity options.
• Swifttrade - Global Securities Trading.
• The Archelon Group - Archelon LLC is an options market maker and proprietary trader of exchange listed options, futures and equities in the US, Europe, and Korea.
• The Archelon Group - Archelon LLC is an options market maker and proprietary trader of exchange listed options, futures and equities in the US, Europe, and Korea.
• Title Trading - Title Trading is privately owned proprietary trading firm. Title traders trade the firm's capital on several US stock markets: NYSE, NASDAQ and AMEX.
• Trade Vision Capital - Trade Vision Capital provides its customers with the highest end order entry software available. It is the only software to receive the NASD's platinum certification.
• Transact Futures - Chicago based trading firm located in the CBOT.
• Transmarket Group - TransMarket Group LLC is a global private trading and investment company. Provide risk capital and market access to individuals for the purpose of trading the global financial markets. Employees trade all global exchange listed derivatives, equities, commodities and selected cash markets.
• Vankar Trading - Professional management of trading systems. Divisions in North America, Europe, and Australia.
• Wasserman Capital - At Wasserman Capital our passion is trading and training others how to trade. Wasserman Capital has a proven apprenticeship program that leverages the same historically proven methods that successful traders have been using for over 100 years. Our training program provides the trading expertise and hands-on coaching necessary to help turn your passion for the financial markets into your career.
• Wolverine Trading - Wolverine is headquartered in Chicago and has offices in New York, San Francisco, Philadelphia and London.
• Zmarc Partners - Specializes in electronic futures and commodity trading with all major international trading exchanges.

[Holden42]

Thanks, Alchemist, for your response, and thank you for that list of firms!

Let me answer the questions that you ask. In terms of type of prop firm, I'd prefer one that specializes in stocks and options. I've been trading mostly options over the past year.

In terms of trading my own capital or other people's capital, I've only traded my own capital thus far, but think that trading other people's capital would be my longer term preference. I do realize there is a big difference...I formed an LLC in a different industry a few years back and raised money to build a business and it was certainly different using my own money AND investors' money vs only my own money.

In terms of environment, I would prefer to be in an office and learn from others, and take advantage of training if available.

In terms of goals, I'm in my early 40's and earn 6 figures in my full-time job in a business management role. I would need to transition to a trading situation where I'd be making at least $150k to $200k per year minimum. How to do that is what I'm trying to figure out. Is it possible to make such a transition in mid-career or do you pretty much have to trade on your own account on the side until you have 1 or 2 years capital to live on, and then make the transition?

[Alchemist]

hello Holden42,


when it comes to stock trading, there are two major prop trading players around: Echotrade and Bright Trading. They both have offices in Chicago and are pretty solid companies. I would check them out. They both require a capital contribution, although negotiable depending on the particular office manager.

It's good to hear you prefer to be in an office. How have you been doing in your trading so far? I understand your point of view regarding trading other people's money. It's more of a psychological thing, I guess.

regarding your goals, you seem to be a very accomplished guy already. I would not dive head first into trading as of yet. I understand you are earning quite a good salary at your current job. I would use that financial stability to trade on the side for as long as you need to feel comfortable quitting your day job.

[Holden42]

I've been doing really well in my trading so far...trading mostly options. Which are the best options prop firms?

How are Echotrade and Bright Trading different from a Wolverine or a CTC?

[Alchemist]

Hello Holden42,

Wolverine and CTC are market makers, quite different from both Echotrade and Bright Trading business models. I'm sure Wolverine and CTC both offer "true" proprietary trading positions (salary, bonus, benefits, etc). as mentioned in my previous post, Echotrade and Bright do not. In addition. Echotrade and Bright do have a deposit requirement, the other two firms you mentioned probably don't. So, it's like comparing apples to oranges. They both trade the same products but are set up differently.

As far as I know, when it comes to choosing a "disguised" prop trading firm specializing in stocks, Echotrade and Bright are the most solid and honest.

[charlesK]

Originally Posted by Holden42

I've been doing really well in my trading so far...trading mostly options.

what kind of options trading strategies do you follow? it would be interesting to hear from another options trader.