If this is the same firm you're mentioning, then it seems they operate as a hedge fund: http://www.sec.gov/Archives/edgar/data/1582725/000101905613000890/xslFormDX01/primary_doc.xml
Ha!! Here is their education that you pay $3,000 for right off their website: http://alpha7trading.com/education/day-trading-course-outline/level-1-course-outline/ What a joke!! Anyone that falls for their gimmick deserves to be out $3,000.
Yes, to trade with a real, registered prop firm you need to take the 56 or 7. Bright and T3 are examples of firms registered with the SEC.
I always say to go and meet the partners in person at the main office . I always have the traders meet with me at Chimera to make sure its a fit for both of us
So if they are a hedge fund... what makes that worse or better than going through a BD / prop firm? Sorry for the newbie questions, but I'd like to understand. Thanks in advance
I think this is very important. Too many trader here only talk about "the deal", and ignore that they are getting into business with a regulated firm. To me, if you choose a prop firm, do it for the people involved, not to save a few dollars. Many traders make this decision too lightly, then complain about how they are treated for 12 months until they can get their cash out. And some, complain that they can't even get their cash out, but never did proper due diligence. This is a business decision and should be treated that way. Look into finances of the firm. Meet the people involved. Ask a lot of questions.
If they are a hedge fund, they will not ask for capital from you to trade. You will trade with investor capital and you will be an employee. A hedge fund typically is not a registered broker dealer.