When beginners are considering joining a proprietary trading firm, they should evaluate various aspects to ensure the firm is reputable, suits their trading style, and offers the support and resources they need to succeed. Here’s a checklist of 25 things to consider:

  1. Reputation: Research the firm’s history and standing in the industry.
  2. Regulatory Compliance: Verify that the firm is properly regulated and compliant with financial authorities.
  3. Capital Requirements: Understand any capital contribution requirements or account minimums.
  4. Profit Sharing: Know the details of profit-sharing arrangements and how profits are distributed.
  5. Fee Structure: Be clear on any fees, including desk fees, software fees, or transaction fees.
  6. Training Programs: Check if the firm offers training programs for beginners and what they entail.
  7. Mentorship Opportunities: Find out if there are mentorship or coaching programs available.
  8. Trading Technology: Evaluate the quality and reliability of the trading platforms and tools provided.
  9. Market Access: Confirm which markets and instruments you can trade.
  10. Trading Strategies: Understand what trading strategies are allowed or encouraged.
  11. Risk Management: Learn about the firm’s risk management policies and tools.
  12. Account Types: Know the types of trading accounts offered and their features.
  13. Support Services: Check the availability and quality of support services, like IT and administrative help.
  14. Trading Environment: Consider the firm’s trading environment, whether it’s remote, in-office, or hybrid.
  15. Community and Network: Evaluate the sense of community and networking opportunities within the firm.
  16. Performance Metrics: Understand how your trading performance will be evaluated.
  17. Growth Opportunities: Look into the potential for career advancement and capital increases.
  18. Contract Terms: Review the terms of the trading agreement or contract carefully.
  19. Withdrawal Conditions: Know the conditions and frequency of withdrawing profits.
  20. Cultural Fit: Assess whether the firm’s culture and values align with your own.
  21. Success Stories: Look for testimonials or success stories from traders at the firm.
  22. Transparency: The firm should be transparent about its operations and performance.
  23. Flexibility: Consider how flexible the firm is in terms of trading hours and locations.
  24. Technology Investment: Check if the firm invests in the latest trading technology and infrastructure.
  25. Legal and Ethical Standards: Ensure the firm upholds high legal and ethical standards in its operations.

This checklist can help beginners in assessing proprietary trading firms and making an informed decision that aligns with their trading goals, risk tolerance, and personal preferences.