Where are you hearing this? If true this would make the 7 a huge waste of time and money.... Say it ain't so man... -Guru
if you belong to an llc and get 20-1 leverage with 5k you can still enjoy the same benefits. only difference,you need to get licensed. another benefit of being licensed is bigger prop firms may employ you with no deposit.
The llc would extend leverage greater than 10 to 1 in the old model as the llc owner would be responsible for losses of traders within his group (so the llc owner can set higher risk parameters if they wanted - at their own risk). This is my understanding of what USED to be the situation - who knows now.