whoa ! that might raise a serious issue with the so called prop firms requiring a 25k deposit. can you provide more information ? thanks ! surfer
i don't have a timeline when new rules will take effect or if there will be loopholes. The trend will be toward schoenfeld model with no cap up. this will result in lower payouts
years ago before firms started to ask traders to put up money there wa no series 7 requirements. afterwards nasd didn't want traders with limited knowledge to lose their own money they put in a series 7 requirement.
Dude.....Rule Number 1 on Elite trader......99% are full of shit and 99% do not trade for a living. PERIOD. Second.....MarketSurfer is correct. Take the deal. The comish are a bit high but the chance you are getting is worth it for now. Im sure if you become a good trader, consistent and Disciplined the firm will find you to be more of an asset and lower ur comish. This market has changed.....so i highly doubt they want u to be a soses bandit or cowboy scalper. Im sure there is a combination of both Scalping when needed and position holding when warrented. SO GO FOR IT> and always Remeber RULE 1 of ET. You will slowly learn who is a TRUE TRADER (investors dont count) as you visit the site more ofter. I will throw you ur first bone....Surfer is for real........
I do not believe this is accurately stated. Years ago, many firms hired traders who did not put up money and did not need a series 7. However, the reasons were different than way the above post implies. In the early through mid (and a bit of the late) 90s, Trading SOES (Small Order Execution System) required that they (SOES traders), be customers and not employess (non professional).. Which meant you could NOT trade with a series 7 license. As for the traders not putting up the money, in many cases that was true. Trading SOES was, for a while, a "game" that was won quite easily. So the firms would "lend" the traders a stake to trade. In essense, they were lending their customers money to "spend" at their firms. Which was later found to be a violation (not sure why....department stores lend thier customers money, and car companies lend their customers money, etc.), but the reality is the NASD did not like this practice. So away it went, some huge fines were paid, and SOES traders became "firm' traders. To trade a firms money you need a series 7. If you put up your own money, you can be a customer and trade without a 7. But then you are restricted to PDT rules. If you are in a partnership (like Carlin or Generic), whether or not you are required to deposit money is irrelevant to needing a series 7. You will. Even if you trade your "own money", with the leverage you get, you will be trading firm capital, and can't be considered a "customer". As for someone else's question about the series 63, this generally only applies if you are either trading from locations in two different states, or, you are a broker and have customers in two or more different states. For a prop trader, I don't think it is necessary unless you travel from office to office in different states. Easy test if you need to take it though. Continuing Ed. is a two year "refresher" program. Takes an hour or so. If you answer wrong, you are told why you are wrong, and I have never heard of anyone failing it. To me, the surprise of this thread is I always believed Carlin Group was the CUSTOMER arm of the firm, and Generic the Prop arm. Guess I had it backwards, or they switched. But they have been the same company at least for the past 5 or 6 years that I am aware of, and probably longer. Strong company. But some questionable policies (IMO) regarding partnership structures (not a concern if you do not need to put up money). Peace, RS