Accounts with multiple prop firms

Discussion in 'Prop Firms' started by cqm, Jan 22, 2012.

  1. cqm



    I am considering signing up with multiple prop firms

    **I DONT DO SCALP TRADING** so this isn't really like double the work

    the *only* drawback so far is the idea of paying multiple data feeds

    but lets weigh the imagined pros:

    - different buying powers and commissions arrangements
    - one has lower options commissions, the other has higher intraday buying power
    - one may allow for 1:1 options to start, the other may allow for 2:1 options
    - one may allow for 2:1 overnight, the other may allow for 4:1 overnight to begin
    - easier p/l accounting than using multiple strategies in one account
    - easier hedging

    the cons:
    - multiple data feeds (this is getting subtracted from my retained capital, and if profitable this wouldn't be an issue really)
    - different platforms

    I expect the relationship with all the firms to be slightly different, where I may be able to negotiate one thing further (like lower commissions, or higher intraday buying power) than the other

    also I'm open to the idea of losing all of my initial principle. not likely with my strategy, but I accept that risk.

  2. 7out


    I think it would be a great idea if you are trying to sell yourself to a prop firm or looking to show a decent track record.

    Set up just 2 accounts, trade one just like 95% of all prop traders do, then with other account immediately take offsetting position.

    I gaurantee you within one year the 2nd account will yield an approx 75-90% ROI. Do this for 1-3 years, then burn all records linking you to prop firm #1, then shop your prop firm #2 records and you will be very sought after.

    PS, this will be the 1st and last time I will give you guys such invaluable ideas.
  3. cqm


    hahaha i expect both to be very successful......

    if I was scalp trading and had a shitty firm that didnt have access to options for hedging then MAYBE I would do what you are talking about
  4. JamesL


    Can you be registered with more than one firm at a time?
  5. cqm


    we'll find out!
  6. Maverick74


  7. cqm


    its more like one firm actually requires registration, the next firm just lets me trade their capital.

    which regulation should I be conscious of though
  8. Maverick74


    Not going to work. There is a reason why we have regulations in this business. I'm not saying I agree with all the regulations, but there is a reason.
  9. cqm


    you missed the question, which regulation should I be aware of?
  10. Maverick74


    When you try to get your U-4, one of the first questions it asks is, do you have an outside relationship with another broker dealer or are you employed by another broker dealer. When you check yes to this question, your U-4 gets killed. Unless this other backing is a parent or some fund you started. Even then, I think the U4 has a question to weed you out.
    #10     Jan 22, 2012