International Prop Firms

Discussion in 'Prop Firms' started by aba1984, Apr 1, 2013.

  1. aba1984


    Hi guys, I've been researching a bit on prop firms. I have been day trading for about 8 months and am getting profits consistently, but now I want to tap into prop trading a bit to see if it's for me. Unfortunately, many prop firms make you pay big training fees, etc. I already like my methods and my trading plan, so I don't want to be taught a new trading plan when I'm already comfortable with mine and profit consistently. No need to fix something that's not broken just so someone can make money off me. I don't have a series 7 either and it seems like you need this to join a prop firm first. I have other obligations, so traveling to a 3-day conference in another state is not possible, either, which a lot of US prop firms ask of you. Nothing against them, they're just trying to protect themselves from over-eager traders, but just stating where I'm at now.

    So anyway, I see that overseas prop firms are a way to go for someone like me. I can put in that $2,500 minimum just to try and see, luckily it's just a small, negligible investment. I love the independence. It's what traders with their own plan need, but it makes me wonder if some other doofus is going to apply for that prop firm as well, be given this same independence and trade foolishly left and right and jeopardize the good traders?

    Looked into Sure Trader and TM Global Capital. Yesterday, I got an email reply from TM Global Capital, signed Ed. A little bit of a turn-off to not get a last name in the signature line, I must say. The reply was an immediate signature file. Also, disappointing. How do they know if you qualify? I am a US citizen. From what I understand, they are not allowed to solicit me, but if I myself contact them, they will accept US citizens, correct? From the contract I got, TM Global Capital requires a $2,500 escrow account so to speak to buffer for any losses, and they give a 99% payout. You are supposed to have 20 trades a month to avoid an inactivity fee. I use eSignal now and love it, so I wonder if I can incorporate it with them? It's pictured on their website.

    I have been researching on these companies all night. It seems like EliteTrader has the only legitimate reviews (hence, I joined), but those are from last year. And you know how quickly those prop firms pop up and go away. TM Global Capital is featured on Bulls on Wall Street (never used the service), but I found that the last prop firm that Bulls on Wall Street featured was Lake Street Trading, which went under because it turned out to be an illegal broker dealer. It makes me question the credibility of this Bulls on Wall Street service. If their last recommended "prop firm" wasn't even a normally licensed LLC, what makes them qualified to now endorse TM Global Capital?

    So this is an ***updated*** question to what you guys think about those Bahamas overseas prop firms? Honestly, I am tired of this SEC stuff. It seems like these loop holes deter many good day traders with great percentage winning rates, so I am ready for something better. I don't appear to be qualified for a US prop firm. Thoughts, suggestions? Thanks!
  2. My advice is to stick to a US-registered broker-dealer. It may be a pain in the ass but there are a lot of regulations that put protections in place that help the customer. The licensing process is expensive and a pain in the ass. Ultimately, your money is at risk in the market regardless. Once your $$ is wired overseas, the US regulators no longer have jurisdiction over it. It can become an issue and you may find yourself like Lake Street customers looking for a new home. It's best to do your research on the legalities. I personally have no idea but I believe the consensus on the board was SEC shut them down because of complaints from traders who requested withdrawals and did not receive them. Only trader here said he went 8 months waiting for his $$ with no word. Ultimately, the traders did get their money back but they have to look for a new home. it would be a pain in the ass for that process to happen all over again.
  3. cmb

    cmb Guest

    i dont know where they are located...but Prompttrader looks decent.

    I dont understand why a firm like Global market Trading does not accept US traders. I know they are located in Canada, other canadians accept US clients.
  4. aba1984


    They do accept US clients, but I think there is misinformation on this board. You have to read the laws verbatim. They're not supposed to come after you randomly and solicit you, but are free to do whatever you want with your own money as long as you proactively contact them, it's just out of the SEC's hands and in the hands of their local regulators. Their located in the Bahamas, not Canada, since they don't have to pay tax there. But I'm not gonna go with them. The replies I got on the email are very unprofessional. If you can't capitalize the first letter and put a period at the end of the single sentence reply, you don't deserve my wire transfer.
  5. Guys, joining an international firm sounds good because it's cheaper off-the-bat but the tax rates from foreign income are much higher than the rates for capital gains you receive with a US broker-dealer. it's not worth it. Spend the $1000 and get the license. You have no business being around 10:1 or 20:1 leverage if it's just a "small investment". You'll just lose your $$$. You need an advantage in this industry to make profits. They simply don't exist the way they used to. The markets are too regulated and the revolving door guarantees big banks have the markets rigged against the small investor.

    if you're with a foreign firm and lose $$, you can not write off even 1 cent of those loses. In the US, you can, which means you save 30% (more or less). If you win, you pay normal income tax rates instead of capital gains. Stick to a US firm. Trust me, it's for your own good.
  6. dealmaker


    You have made a lot of incorrect assumptions, Echo trade does not offer any training or 3 day conferences but you will need S7 and more than $2500 to get started...
  7. aba1984


    Yeah, I think I will just stick with my own funding. It's not like I am underfunded, I was just hoping of turning my current account into a swing account only and liked to advantage of having more shorting opportunities through the brokers that prop firms use, but if it means waiting a couple of months to build up more capital and open up a few more brokerage accounts so I have more short stock availability, no big deal.

    I tried contacting some of the US prop firms, but goodness gracious, they are so bad about replying to their emails. So, looks like I'll continue on my own path. :D
  8. dealmaker


    With only $2500 you are underfunded, it doesn't matter who you trade with markets with eventually eat your lunch. There is a reason having a large account is considered an edge.
    Perhaps you will prove me wrong and persevere but since only 1% of traders make it with descently funded accounts, you making it only means you are an outlier.
  9. aba1984


    I never said I had $2,500, that was a reference to what their minimum requirement is.
  10. aba1984


    I think I will choose Echotrade, their customer service is superb. Nice to read their reviews too. Thanks everyone for the posts. :)
    #10     Apr 8, 2013