Financial stability of sub LLC firms

Discussion in 'Prop Firms' started by vanhelsing, Jul 1, 2006.

  1. Is there anyway to judge the financial stability of these sub LLC firms? As a prospective "member", do you have access to any audited financial statements? If no, than how does one know whether the firm is in imminent threat of bankruptcy? Of course, I am talking about before you make the required capital contribution. It is probably easy to tell once you start trading there.
     
  2. Chagi

    Chagi

    Good point. I was looking into one of the Canadian prop firms a few months back, and immediately had second thoughts once I saw some further details of how the arrangement would be set-up.
     
  3. Bottom line is keep the Minimum money at the firm and don't think about it.

    If a trader blows out his account and the firm is wiped out your money is gone.

    I used to keep way too much in my account, now I keep the minimum.

    If I lose it, so what.
     
  4. (Sorry to all who have heard/seen this a hundred times).

    Check the balance sheets as you would with any business partner...if they won't show you and explain them, simply do not do business with them. No excuses make any sense (thai I've heard anyway).

    Don
     
  5. fader's right if you put 5k in and get 100-1 margin and you sweep your account every month and just keep 5k in and save 5k a month in commissions over bright who cares in 12 months if you lose your 5k. you saved 60k in commissions
     
  6. fader's right if you put 5k in and get 100-1 margin and you sweep your account every month and just keep 5k in and save 5k a month in commissions over bright who cares in 12 months if you lose your 5k. you saved 60k in commissions
    :confused:

    what firm and rate allows you to do that.
     
  7. marketsurfer

    marketsurfer Vendor

    wonder if jim rogers asked refco to see their balance sheets??


    the balance sheet may tell you something, but it certainly is not the end all any longer due to fraud, etc.


    :D :D :D

    surf
     
  8. kbeck

    kbeck

    i would question any firm or any person that would do that. if they did that they are not very smart business people. imo

    k
     
  9. marketsurfer

    marketsurfer Vendor

    why?


    surf
     
  10. kbeck

    kbeck

    trading 500k with 5k doesn't allow much for slippage or losses it seems. if you know a firm that i can do that with let me know. and even better if trader doesnt need a license.

    k
     
    #10     Jul 3, 2006