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    Overview of Prop Trading in Sydney

    There are a number of companies that offer prop trading in Sydney. This is largely due to the CDB of Sydney and its financial district being highly populated with eager traders and funds, but also thanks to the international slow down – particularly since the GCF of 2018 and the introduction of the Volker Rule that saw all banks in the US and a lot of Europe either banned, closing or slowing their prop trading desks.

    Prop trading desks in Sydney and around the world, unlike managed funds, hedge funds or other investment schemes, use the firm’s own equity to complete the trades, not that of investors. As such they are exposing their own money and future to the markets.

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    A prop trading desk trades in a wide array of financial instruments including shares, bonds, currencies, commodities, derivatives, or other financial instruments. As such, there is a great deal of responsibility on these desks and the decisions the analysts and traders make, especially in the case of leveraged trade, which was a major contributor to the GFC in 2018.

    Who are the proprietary traders in Sydney and what do they do?

    There are a wide variety of propriety traders in Sydney who use their own capital to trade. Typically these traders have a range of training and mentoring programs available. This not only allows people to gain additional knowledge and experience through online platforms but also allows the prop trading firms in Sydney to establish and recognise a steady stream of talented traders who can come into the business already having proved their skills.

    For example, Genesis Trading, a prop trading company in Sydney, has a range of trading and mentoring services that are supported by a range of facilities for potential traders to work through assessment online. The company moved to an in-house training platform with the final step being the successful applicants are offered to join the business as a fully funded trader.

     

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    These Sydney based prop trading companies utilise technology to allow them to get the best traders from around Australia and the world to work in their propriety trading networks on their behalf to maximise the profits from their working capital. 

    What if you want to start prop trading in Sydney or around Australia?

    The next steps for anyone looking to get into prop trading similar are to look in and around the prop trading companies in Sydney, review their credibility, analyse their past results and get a deep understanding of the traders and principals of the firms.

    Most prop trading Sydney based companies have embraced technology and are offering online trading platforms, training portals, webinars and courses to allow traders to develop themselves – often for free – while also reviewing their progress and sometimes offering the successful traders a fund or position in their firm. 

    Prop trading in Sydney offers huge opportunities for profit and also for losses and should never be done by an inexperienced trader or firm. Before looking to invest in a firm that engages in prop trading, be sure to speak with an independent expert first.

    We welcome you to give our team a call to discuss your investment goals and objectives.

    You can call Walker Capital Australia on +61 2 8076 2210, and we’ll see how we can help you achieve your investment goals.

    Want to read more great information on Proprietary Trading? Check out our Proprietary Trading article: Exploring how Proprietary Trading is different from regular trading