Getting Initial Contribution Back

Discussion in 'Prop Firms' started by Eqtrading, Mar 15, 2012.

  1. Eqtrading

    Eqtrading

    I am looking at joining a prop firm and putting up my initial capital contribution. I have been told by most firms that require a Series 7 license and offer more leverage that there is a one year lock up of initial capital. This one year lockup seems fair and reasonable, my question is has anyone had any trouble getting their contribution back after 1 year has passed? Any experiences would be appreciated.
     
  2. There should be no lockup time needed from a non CBSX registered firm. A CBSX firm is required to lock up initial contributions for 1 year.
     
  3. Eqtrading

    Eqtrading

    Thank you, I am asking about CBSX registered firms.
     
  4. rmorse

    rmorse ET Sponsor

    The lock up is a SEC rule. If the prop firm uses your capital toward their capital calculation for trading, your contribution must be held for 1 year. If they hold it aside, and only use their own funds for trading, they are not required to lock up your money by the SEC.
     
  5. t0pd0g

    t0pd0g

    That is true. However, the CBSX REQUIRES all firms put it to firm capital whether they want to or not. The are not entitled to "hold it aside".


     
  6. We don't lock up initial deposit. If you decide to resign in 3 months, you get your money back. We are a CHX firm, not cBOE.

    As Mr. Morse said, we don't need to use your money to meet our requirements.

    FWIW,

    Don