Affinity Trading Group...

I won't spend much time on this. When I first looked into it, I thought Affinity was a prop firm. As I looked into it more, it is simply an education group that focuses on teaching scalping and high-frequency tactics. The website is incredibly professional and the work they've put in to make themselves look good online is clear. I can't testify to whether the education is sound or not, but if you are a trader that is looking to trade prop with one of the firms that doesn't offer their own training, it may be worth your time to investigate Affinity further. Check on Elite Trader and Trade2Win for more information. I decided not to spend any more time looking into it since it didn't meet my criteria. Of the firms I've looked into so far, Echo doesn't have training, Bright has training that gets mixed reviews, and Maverick has training that seems to be fantastic but doesn't encompass high-frequency; just equities, options, futures and Forex on a lower-frequency level.

Information on ECHOtrade, LLC...

Update: ECHOtrade has closed for business, and it looks like that happened around 2013. They ran into some legal issues, and from what I can tell, they had a mass exodus of their traders due to shoddy management. There wasn't much information on the specifics, at least that I could find. 


Over the last few years, ECHOtrade has always been one of the names that has come up in conversations about prop trading, along with Bright and Maverick Trading. Similar to Bright Trading, they have both remote trading and in-office access available in specific locations. Another similarity is that they require all traders to carry a Series 7 unless you've had twelve consecutive years in good standing on an exchange. They also offer automated trading, although from everything I've ever seen or heard, black-box trading will inevitably implode and the traders always end up busted. While it's important to have great and reliable tools, any trader that is going to fully rely on a software to make them money is a fool that will soon be parted with their money, in my opinion. Echo is really not designed for beginning traders, as they don't offer any formal training. The way their trade costs are structured, traders really need to "hit the ground running" and it was suggested to me by one of their representatives that it would be very difficult to make profits without trading at least 20,000 shares daily. I really appreciated this information, as they were neither trying to sell me into something that I wasn't interested in, and they made it clear that they were a high-frequency equities firm (unlike Maverick Trading which I will review next). For me personally, I wasn't really interested in this type of trading, but I continued to ask questions in order to pass on the information here. The customer support is great, but there really isn't much of a community unless you are in one of the physical locations in NYC, Chicago, Phoenix and Boca Raton, FL. They use a number of different software programs which are obviously all directed toward high-frequency trading and will come at a cost of a couple hundred dollars per month to use them, depending which tools you use. The commissions and are competitive with most of the high-frequency prop-firms ($0.004 per share) and there is no profit split. The trader keeps 100%, but they also don't back you with firm capital, only margin. They do have desk fees between $250-$400 depending on the frequency and size of your trades. There is a minimum risk deposit required of $10,000.

Conclusion: Echo is a highly-reputable firm that is great for anyone looking to use technology to maximize their high-frequency trading. They are a well-organized machine. The reviews from traders are mostly positive. They specifically generate profits from traders' executions, so they want as much trading as possible out of each trader. The pros are that you get to be with a good firm and enjoy top-tier technology for your trades. The cons are that you are a small fish in a big pond and you have to have a Series 7 and limit yourself to high-frequency trading. I will say that I was impressed overall, and if I were looking to be a high-frequency trader, I would very likely go with Echo. I give them 3.5 out of 5 stars.

Information on Bright Trading, LLC...

Bright Trading was the first firm I looked into. They are a really big firm and have a known reputation in the industry. It is headed by Bob and Don Bright who have some very established track records. Their website is one of the worst I've ever seen. It's www.stocktrading.com. It's very amateurish and there is almost no information about the actual process. I watched some of the videos which seemed scattered and lacking, but I guess that's neither here nor there. It just seems like it should be redone. I don't expect them to give away free trading tactics, but it would be nice for information about joining the firm to be clearly displayed. Anyway, I called them and got a little more information. The process to become a trader requires you to travel to Vegas for a 3-day orientation class that costs $1250.00. This is a prerequisite for their 2 week Boot Camp class which is offered online and costs $3000.00. In order to take the Boot Camp, you must also join the firm and carry a Series 7 license. The sentiment I get from their members and former members is that the training isn't great, so it could be tough for newer traders to "get over the hump". The firm's focus is on high-frequency equities and pairs trading. The desk fees are $400/month and there is a minimum of 12 months required. They have both brick-and-mortar offices across the U.S. and in Vancouver, B.C., and they also have remote trading available. They use RediPlus  and OmniPro softwares. I don't care for RediPlus, as it's a bit dated, but I've never used OmniPro. I couldn't get any exact information as to the amount of risk capital that traders need to bring in, but from the reviews I've read, they are very good about getting people's money back to them quickly when they quit. They do seem to have a decent community with teams and mentors dedicated for each trader. The feedback is mixed on this, but I do know from experience that trading with a group is far superior to trading alone.

Conclusion: Bright seems like a good place to trade if you are an experienced day trader or pick up on things easily. The start-up costs are reasonable for this industry, but the training may lack a bit. They are well-established and are headed by some outstanding traders. They do require licensing, which seems unnecessary based on what traders do and what the Series 7 is designed for, but I'm sure it keeps everyone protected. I give Bright Trading 3.5 out of 5 stars. (Get a new website. It's cheap and easy.)