Avatar Securities, LLC
Avatar Securities is a New York-based proprietary trading firm that recruits experienced U.S. equities and equity options traders, providing firm capital, co-located infrastructure at Equinix NY4, and direct market access platforms in exchange for a share of trading profits.
- Company typePrivate
- Founded2002
- HeadquartersNew York, United States
- Headcount51–100
- GTM typeB2B
- OfferingServices
What Avatar Securities, LLC does
Avatar Securities, LLC is a New York-based proprietary trading firm that recruits and capitalizes experienced professional traders to trade U.S. equities and equity options on the firm's behalf. Founded in 2002 by former key personnel of Tradescape Corp (acquired by E*Trade that same year), the firm operates as a registered broker-dealer and member of FINRA and Nasdaq PHLX. Its GTM is sales-led and direct, targeting traders via a careers page and outreach, requiring valid SIE and Series 57TO licenses for experienced hires and offering a year-long training program for entry-level recruits. Avatar also supports trading groups and algorithmic/quantitative traders, providing them with firm capital, institutional-grade technology, and back-office support in exchange for a share of trading profits. The firm is privately held, led by Managing Member Omar Kathwari, with no outside investors or external customers.
The firm's technology stack is anchored by proprietary and licensed direct market access platforms — Takion, Lightspeed Trader, Sterling Trader Pro, and SpiderRock EXS — augmented by a proprietary low-latency API supporting C++ and Python for automated and quantitative strategies. Servers are co-located at Equinix NY4 with redundant fiber connectivity to two custom-built trading floors: a Manhattan headquarters at 148 Madison Avenue and a roughly 10,000-square-foot Chicago floor at 300 S Wacker Drive, supplemented by remote trading via VPN/SSL. In-house proprietary tools include a custom reporting engine with T+1 execution transparency, transaction cost analytics, an HTB locate finder aggregating 14 unique vendors, an in-house Trader Portal, and a firm-wide messaging platform. The firm executes through Wedbush Securities for clearing under a JBO arrangement, with routing relationships spanning Credit Suisse, Morgan Stanley, JP Morgan, Virtu, IEX, Speedroute, and ITG.
The revenue model is principal trading: Avatar deploys its own capital and distributes a portion of monthly trading profits to traders (paid on the seventh business day of the following month), retaining the remainder, with all fees deducted as top-line expenses before splits. Year-end Schedule K-1s are issued to traders for tax purposes. There is no traditional customer base — traders are not brokerage customers and SIPC coverage does not apply — and no disclosed pricing tiers beyond individualized profit-sharing arrangements.
Avatar Securities, LLC firmographics
Firmographics- Name
- Avatar Securities, LLC
- Legal name
- Avatar Securities, LLC
- Website
- https://avatarsecurities.com
- Company type
- Private
- Founded year
- 2002
- Operating status
- Operating
- Headcount range
- 51–100 employees
- Short description
- Avatar Securities is a New York-based proprietary trading firm that recruits experienced U.S. equities and equity options traders, providing firm capital, co-located infrastructure at Equinix NY4, and direct market access platforms in exchange for a share of trading profits.
- Ownership category
- akta.pro rank
Avatar Securities, LLC industry classification
Industry- Product category
- Proprietary Trading
- NAICS
- Securities and Commodity Contracts Intermediation and Brokerage (5231), Portfolio Management and Investment Advice (523940)
- SIC
- Security Brokers, Dealers & Flotation Companies (6211)
- akta.pro primary industry
- Equities Brokerage (FSAEACAH)
- akta.pro secondary industry
- Agency Equity Execution (Cash Equities) (FSACAFAA)
Keywords
Where Avatar Securities, LLC is headquartered
LocationHeadquarters
- HQ city
- New York
- HQ country
- United States
- HQ region
- North America
Offices4 records
Markets served
Avatar Securities, LLC business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Technology or R&D, Operations, Infrastructure, Marketing or Sales, Others
Revenue model
- Proprietary Trading Profits: Avatar Securities generates revenue by trading its own capital in U.S. equities and equity options markets. Traders receive profit distributions (typically monthly on the seventh business day) while the firm retains a portion of trading profits. This is a principal trading model where all trades are marked as principal.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Monthly | Quote-based profit-sharing arrangement tailored to individual traders |
Go-to-market motion1 record
Distribution channels1 record
Marketing channels5 records
Avatar Securities, LLC product offering
Product offeringCore offering
Avatar Securities is a FINRA-registered proprietary trading firm that recruits professional traders and supplies them with firm capital, co-located direct market access infrastructure, and proprietary low-latency trading technology to trade U.S. equities and equity options. The firm retains a portion of the trading profits its traders generate, with the balance distributed to traders on a monthly profit-sharing basis.
Product overview
Avatar Securities is a multi-strategy proprietary trading firm offering a unified platform ecosystem centered on three primary DMA trading platforms: Takion, Lightspeed Trader, and Sterling Trader Pro, supplemented by a proprietary low-latency API for automated and quantitative trading. The product portfolio also includes SpiderRock EXS as an execution venue option, remote prop trading capabilities with VPN/SSL connectivity to co-located servers, and proprietary tools such as a reporting engine, trade execution analysis tools, HTB locates services, and the Trader Portal for consolidated access to P&L, statements, and analytics. The architecture supports discretionary, algorithmic, and quantitative trading methodologies across equities and equity options asset classes.
Differentiator
Problem solved
Functional benefit
Products and services
- Takion Trading Platform Professional intraday trading platform designed for professional traders, featuring real-time filters, robust order management, customizable Level 2 and Time & Sales, and direct market access routing to exchanges, ECNs, and dark pools.
- Lightspeed Trader Low-latency direct access trading platform ideal for intraday, swing, and position traders, offering equities and options routing to over 100 different execution strategies with optimized Level II quote messaging.
- Sterling Trader Pro Full-featured Level II direct access trading platform designed for professionals working with electronic markets, featuring advanced order routing and management with real-time profit and loss capabilities.
- SpiderRock EXS Execution platform option available to Avatar traders as part of its execution platform offerings, providing additional trading capabilities.
- Proprietary Low-Latency API Proprietary low-latency API co-located at the Equinix NY4 data center, enabling traders to write in C++ or Python or use a web interface for automated and quantitative trading strategies with minimal latency.
- Remote Proprietary Trading Remote proprietary trading service for experienced professional traders who connect via VPN/SSL to co-located direct market access platforms at the exchange, with full portal access to P&L reports and account statements.
- HTB Locates Service Hard-to-borrow locate and pre-borrow services providing access to 14 unique locate vendors with custom time-sensitive sourcing algorithms and auto-accept features for competitive locates and borrows.
- Trader Portal In-house built proprietary portal providing access to P&L reports, account statements, compliance and platform documents, earnings and economic calendars, and fee schedules.
- Trade Desk Support In-house trade desk providing securities lending, pre-borrow and locate services, joint back office arrangements, and network connectivity support to traders.
- Proprietary Reporting Engine Custom-built reporting engine providing transparent access to executions and fees with T+1 access to all trading information and customizable searches for analytics.
- Trade Execution Analysis Tools Transaction cost analytics tool providing granular view of trading behavior for performance analysis and trade execution quality.
Quantifiable outcome
- 14 unique locate vendors
- +3 more outcomes
Companies that use Avatar Securities, LLC
Customer profileSegments4 records
Ideal customer profiles4 records
Avatar Securities, LLC technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Integration37 records
AI capability7 records
Feature8 records
Avatar Securities, LLC partnerships and signals
Strategic signalPartnerships
Five partnerships are on record, tiered core.
- Lightspeed Financial, LLCcoreSoftware licensing agreement where Lightspeed Financial makes available Lightspeed Trader DMA trading platform to Avatar Securities traders. Provides low-latency, feature-rich direct market access platform.
- Wedbush SecuritiescoreJBO (Joint Back Office) arrangement with Wedbush Securities for clearing and back office support. Also provides pre-borrow and locate services as part of the securities lending relationship.
- Takion TechnologiescoreTakion is a professional intraday trading platform offered at Avatar's trading floors with direct fiber connections and dedicated quote servers. Takion provides customizable DMA trading with extensive external linking capabilities.
- Sterling Trading TechnologiescoreSterling Trader Pro platform offered as one of Avatar's execution platforms. Full-featured Level II direct access trading platform with advanced pinpoint accuracy for order routing.
- Equinix NY4 Data CentercoreCo-location of servers at Equinix NY4 data center for low-latency trading infrastructure.
Scale indicators4 records
Recent moves6 records
Expansion highlights5 records
Avatar Securities, LLC competitors and assessment
Company assessmentDirect peers
- Bright Trading: Bright Trading is one of the largest independent proprietary trading firms in the U.S., offering equities and equity options trading capital to experienced traders across multiple office locations. Directly comparable to Avatar in business model (proprietary capital, trader profit-sharing, equities focus, FINRA broker-dealer status) and target trader segments.
- SMB Capital: SMB Capital is a New York-based proprietary trading firm recruiting and training equities and options traders with a similar profit-sharing model. Direct competitor in recruiting experienced and entry-level traders into the prop trading model with shared capital and proprietary technology.
- Wolverine Trading: Wolverine Trading is a Chicago-based proprietary trading firm specializing in equity options and equities execution. Comparable in focus on options market making and trader profit-sharing, with overlapping execution infrastructure and exchange memberships.
- Group One Trading: Group One Trading is a proprietary options trading firm in Chicago focused on equity options market making. Highly comparable to Avatar in trader profit-sharing model and equity options asset class focus, with similar exchange memberships and trader recruitment approach.
- Akuna Capital: Akuna Capital is a Chicago-based proprietary trading firm specializing in equity options and derivatives with technology-driven execution. Comparable in options market-making focus, technology-led culture, and recruitment of quantitative and algorithmic traders.
- Maven Securities: Maven Securities is a global proprietary trading firm with a focus on equities, options, and futures across multiple offices. Comparable in recruiting experienced traders with profit-sharing economics and providing institutional-grade execution infrastructure.
Broad incumbents
- DRW Trading: DRW Trading is a large, diversified Chicago-based proprietary trading firm operating across multiple asset classes including equities, options, fixed income, and crypto. Comparable in being a FINRA-registered prop firm with equities/options trading, but materially larger and more diversified than Avatar.
- Tower Research Capital: Tower Research Capital is a high-frequency proprietary trading firm with significant low-latency infrastructure and global presence. Comparable in equities HFT focus and co-located trading technology, but operates at materially greater scale and across more asset classes.
- IMC Financial Markets: IMC is a global proprietary trading firm and market maker with significant equity options and equities presence. Comparable in options market-making and trader profit-sharing economics, but operates globally and at a much larger scale than Avatar.
Regional players
- All Options International: All Options International is a proprietary options trading firm based in Amsterdam. Comparable in equity options trading focus and trader profit-sharing model, but operates primarily in European markets rather than competing directly with Avatar's U.S. equities focus.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks7 records
Key highlights7 records
Customer concentration
Avatar Securities, LLC social profiles
Digital presenceAvatar Securities, LLC compliance and trust
Trust signalCompliance2 records
Avatar Securities, LLC financial estimates
Financial estimateRevenue estimate
Valuation estimate
Avatar Securities, LLC leadership team
Management profileNumber of profiles
Profiles2 records
Avatar Securities, LLC funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Avatar Securities, LLC M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Avatar Securities, LLC
What does Avatar Securities, LLC do?
Avatar Securities is a FINRA-registered proprietary trading firm that recruits professional traders and supplies them with firm capital, co-located direct market access infrastructure, and proprietary low-latency trading technology to trade U.S. equities and equity options. The firm retains a portion of the trading profits its traders generate, with the balance distributed to traders on a monthly profit-sharing basis.
Is Avatar Securities, LLC a public or private company?
Avatar Securities, LLC is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Avatar Securities, LLC founded?
Avatar Securities, LLC was founded in 2002. It employs 51 to 100 people.
Where is Avatar Securities, LLC based?
Avatar Securities, LLC is headquartered in New York, United States, in the North America region.
How does Avatar Securities, LLC make money?
One revenue line is on record: proprietary Trading Profits.
Who are Avatar Securities, LLC's main competitors?
Direct peers on record are Bright Trading, SMB Capital, Wolverine Trading, Group One Trading, Akuna Capital and Maven Securities. Broad incumbents are DRW Trading, Tower Research Capital and IMC Financial Markets. All Options International is listed as a regional player.
Does Avatar Securities, LLC have an API?
Yes. Avatar Securities offers a proprietary low-latency API co-located at NY4 Equinix data center. Traders can write to the API using C++ or Python, or use a web interface. The API enables advanced traders to implement automated and quantitative trading strategies with minimal latency.
What industry is Avatar Securities, LLC in?
Avatar Securities, LLC's product category is Proprietary Trading. Its primary akta.pro industry code is FSAEACAH, Equities Brokerage, with a secondary code of FSACAFAA, Agency Equity Execution (Cash Equities). Its NAICS code is 5231 and its SIC code is 6211.