SIPC: The earlier thread about SIPC protection brings me to write this. There really is no SIPC involved in a Proprietary firm, SIPC is only for retail customers (protecting the widows and orphans). Since traders become members of the Firm, which allows them all the privileges and advantages, the SIPC is not really important. As far as keeping your capital "low" in your trading account....that is a personal choice, since you pay interest on overnight positions based on your capital. And if you think about, why be concerned about $10 or $25K, when you have Limited Risk and an unlimited upside. If you make a few hundred thousand per year, take it out if you like, your firm should be well capitalized enough to not care. We actually prefer people to keep their accounts at the minimum, that way their overall risk parameters are much lower, which protects everyone. I do agree with the person who said that you need to be concerned with the firms stability and financials. Always ask to see a Balance Sheet! This is a fundamental business practice that should be exercised by all.