Wedbush is the clearing firm. This is where your money resides. Lightspeed is the introducing broker to Wedbush and acts as an intermediary between the customer and the clearing firm. They provide additional guarantees to the clearing firm incase the customer blows out. They deal with the necessary regulatory issues and provide customer service to the trader. When you send money in to the account, you will send it to the clearing firm. This is the way it is with many large clearing firms such as Merrill Lynch and Goldman Sachs. They generally require a introducing broker to act as an intermediary between them and the client. This is very different then a prop firm. This is your money only and it is guaranteed by SIPC
Max, chill out man. This seems uncharacteristic of you. Old Man Morse does not represent a prop firm. He's cool. The SIPC should protect you in most cases, in any case.
Max E. Do you not understand this is not a prop firm. Sorry you got taken, but this is very different.
In the simplest terms....I believe you are mixing up a "sell side/retail firm" that the op refers to and a "buy side/prop firm" where you had your bad experience.
LOL, good call im probably flipping out for no reason, SIPC only insures you with specific banks and places like IB thats why i was saying go with those places where money is guaranteed. Im sorry if i flipped out i didnt mean to do that, but the emotion is still raw, my prop firm walked out on us with everything we had, and we learned they had to keep up 5 million bucks just to let us trade, so one day we walked into work(like two feet from my bedroom) and the bank was just firesaling all of our positions, then the owner of the firm walked away, and there was nothing we could do. Thing is he still had 5 million of our dollars by my estimate, cause the bank cut us all off and started selling all our shit the second we dipped below that threshold. So the firm wasnt bankrupt, it was just out of business, and this piece of shit George Eloi Walked away with 5 million bucks of our fucking money. Just got totally burned. Sorry if i sound upset but it still pisses me off i wish i was a millionaire just to sue and go after him, but there was no point, all of us would have spent more in legal fees than we would have gotten back, so you just have to accept some cockroach walks off with your entire net worth. Its fucking painful, sorry if i snapped. Im not saying this from a position of someone just shooting from the hip, im saying it as someone who took a fucking bath because of a crooked prop firm, and i didnt realise you basically have zero legal recourse at the end of the day if it happens.
No worries. I do not see how a prop firm could have that much of your money. I thought the idea of a prop firm was that you traded their money, not your own. But alas, seems like you got into some bad deal, and I am sorry for that. Just take a breather man. It is the only thing you can do at this point I reckon'?
It wasnt 5 million of "My money" it was 5 million combined deposits from all of our money, if the full 5 million was mine i would have hunted him down and killed him lol. Sorry, but theres a point where its just too far. I still had my entire liquid net worth there at the time though, i lost everything.