What is a proprietary trading firm or prop shop?
Proprietary trading is trading with the firm’s assets, as opposed to for customers. Most major firms and banks have proprietary trading groups. The difference between these and pure “prop shops” is that the latter do nothing but trade. What’s better to get – an MBA or a CFA? The bigger firms are looking for the best and brightest from the pool of math and economics majors. It certainly helps to get your foot in the door by having the necessary educational background. The MBA is generally a good place to start. For traders, the MBA is becoming increasingly expected, especially for those looking to work at larger firms. However, a CFA (chartered financial analyst designation) is something a smaller number of traders do obtain, especially if they’re working on the sales side or as analysts. The non-profit CFA Institute, which awards the CFA, describes the designation as a “self-study graduate level program for investment professionals.” There are three separate exams for the CFA, but ther
