Being Registered at Broker-Dealer and Trading an Outside Account

Discussion in 'Professional Trading' started by Nagarjuna, Mar 14, 2007.

  1. Lets say you get registered by passing the Series 7 and 63 exams. You trade at a prop firm like Assent. And you have another brokerage account outside of Assent. Do you have to report all trades on the outside account to Assent? If so is it simply reporting of trades that you have to do or do you have to get permission as well?
  2. Truff


    You will need permission and dupe confirms sent to Assent
  3. Why not just have an acct somewhere else in a relative's name and quietly trade it without any hassle?
  4. Let's see, maybe not because of violating your contract with Assent, violating SEC regulations, committing a possible felony. All that comes to mind.

  5. So if you like to trade options, futures, and other instruments I guess its better to trade as an unlicensed trader in a sub account (llc).
  6. LOL. I think those are 3 decent reasons why you shouldn't hide an account.

    Sooner or later, something will happen and you'll have to explain why you've been hiding an account.
  7. How could it be better? Why do you care of a broker sends some statements to your firm? As long as you doing everything legally, there should be nothing wo worry about. Where I work, we have to authorize those kinds of deliverys for our customers. I guess it depends on whether or not you need leverage.

  8. If you trade a sub account as an unregistered trader then NASD regulations don't apply to you, and you get all the leverage they're willing to provide. If Truff is right then compliance with NASD as registered rep. goes beyond just sending your broker the trade confirms - you have to get permission to place the trades in the first place. Is Truff right on this?