are prop firms illegal?

Discussion in 'Prop Firms' started by increasenow, Oct 13, 2008.

  1. It varies among the employee type firms. The other group, with a broker dealer, require a Series 7 (with one or two possible exceptions).


    Don
     
    #11     Oct 14, 2008
  2. Well im sure I'll get flamed for this but here goes once again...

    THESE ARE NOT PROP FIRMS!!!!!!!!

    a REAL prop firm applies for registration with FINRA and The SEC and can use leverage levels higher then typical brokerage firms...Usually around 7:1 depending on if they can get a JBO with their clearing firm....

    what a lot of posters here call 'PROP' trading are LLC's that the CLearing firm gives extended leverage to....LEH was giving 40:1 leverage to LLC's calling themselves 'Prop firms".....how's that working out for them? Its risky Pooled $$ that is a house of cards.
     
    #12     Oct 14, 2008
  3. wow...I am so close, so close to signing up with a prop firm...so close...just hesistant about the one time a month payout and etc....anybody ever really been burnt by one?
     
    #13     Oct 14, 2008
  4. Jachyra

    Jachyra

    Lots of people have been burnt many times by many different firms that have both blown up due to poor risk management as well as less than scrupulous business practices. That's not to say there aren't very good ones out there, but I would highly recommend going with one that is highly reputable and extremely solvent and not one that gives you the lowest commissions or the best leverage.

    I'm not with either, but I know Bright Trading and ECHOtrade are the only two I would feel comfortable putting my money with.
     
    #14     Oct 14, 2008
  5. Twice a week withdrawals, Tues and Thurs...FWIW.


    Don
     
    #15     Oct 14, 2008
  6. this one only allows it on the 25th of the month only
     
    #16     Oct 15, 2008
  7. Why is that so bad?
    Don't even think about living off of trading because you probably won't make it. Unless you're proven to be consistently profitable.

    Get a part-time job so you can concentrate on making good trades rather than forcing trades so you can pay the electric bill.
     
    #17     Oct 15, 2008
  8. i've had no problems with title and wts - try and get a hold of a trader who works for the same company and see what they say. what firm are you looking into?
     
    #18     Oct 15, 2008
  9. I will not and never mention any names...not good to do so...do your own research please...thanks!
     
    #19     Oct 15, 2008
  10. jnbadger

    jnbadger

    Twice a week with Echo also. Incnow, where do you get your info?

    And what the hell are we supposed to research? Are we supposed to research every firm out there for you, and then get back to you as to whether or not Prop firms are reputable?

    I think there are 2 possibilities here:

    1. You have an axe to grind with prop firms in general, so you create multiple threads to create fear in the minds of others who may be thinking of going prop.

    2. You're an incredibly indecisive flake who has no business trading through a leveraged prop firm in the first place.

    Do your own research, and make a decision for Christ's sake.
     
    #20     Oct 15, 2008