Discussion in 'Prop Firms' started by WhiteOut56, Jul 12, 2012.
Don't think that would work, since IB is retail. I don't think they (IB) franchise out their Front End either, not 100% sure.
To my knowledge IB does not offer Joint Back Office relationships would be required for a BD prop firm.
Maverick Trading does use IB has their trading platform. They are not a typical prop firm as they don't do stocks (only options) and don't give a rat's ass how many shares you churn in a month
I know that they offer their platform as a white-label option to introducing brokers and advisors, but don't know why a prop firm would care whether the front end, reports etc. was labeled as IB or their own firm.
Not much difference between prop and IB if you have 100k to open an account. IB will provide portfolio margin and plenty of leverage.
IB also provides the interface to do on open and close type orders etcs and route orders to different exchanges. Plus deep discounted trades per share if you want.
Don maybe you could highlight how bright is different?
$100K is not really enough for PM. If you have a draw down, you will revert to Reg-T. Your rates at most prop firms will be better, but you'll be regulated and have to share your P & L and commingle your account. If you can fund a PM account with $125K to $150K, I would prefer PM over Prop for most traders. Even if it cost more.
Last I checked, IB was advertising 100k for PM. But you could be right regarding drawdowns. I also think IB was advertising 1% for PM
I just checked. They require $110K.
Customers who maintain a balanced portfolio of hedged positions could benefit from lower margin requirements and greater leverage using IB's Portfolio Margin account. Customers who are currently approved for options trading and who maintain an account minimum of USD 110,000 are eligible to apply for an account upgrade to Portfolio Margin. Portfolio Margin is calculated for cash and equity products only; futures margin is always calculated and applied separately using the SPAN margin algorithm.
I have been in this business a long time. The worst think any business can do is try to run a business under capitalized. In my opinion, with $110k, you will always be worried about losing money, not concentrating on making money. I recommend $125K as minimum, but more is better. $125K allows you a 25% draw down.
i guess your a broker , good advice