I'm thinking of signing up for this company and wondered if anyone else has heard of them. Here's what I know: They are a registered Nevis Island Corp...which means they are offshore. That gets them around the $25K day trading rules in the US. They let traders trade 10X capital for those who contribute more than $5K. They make their $$ on a small slice of commissions, software, other fees. In return, traders get 100% of the profits they make...yet losses are cut off at $1K short of their capital contribution. Hence, BSIC has cut their risk to virtually nothing. They were registered with Nevis via Morningstar Holdings in July/11. All of this is public information for those who do their homework, so mods, please don't edit. Has anyone out there traded with them? Are they legit? Thanks, Duga
If they have offices in the US (they do...an old shitty trading floor in NY) and are owned by US citizens (they are), then they need to register in the US as a BD. Otherwise they will get shut down like Tuco, Epighany, Paramount, Regency, etc. Trade at your own risk. The SEC is going after companies like this.
OK, thanks for the info. I have been learning their DAS Pro trading software so far. At this point it's hard to differentiate between those firms that are scams and out to steal your money vs. those that are legitimate start-ups trying to get their legs under them. The deficiency in customer support can be frighteningly similar in both cases, but the rewards can be exquisite in the latter. Any other experiences?
I traded for them. Angelo was a good guy. I'm pretty sure their trading desk is in Florida, though. When I closed my account I got my money back promptly. DAS was OK - decent executions. The platform fee is like $250/mo or something though, and commissions aren't as good as retail. To tell you the truth I don't know why I did it. I figured if I could make the same with leverage and have more cash on hand, it would be better somehow. Silly thinking. Retail with Lightspeed is much better.
Go with CTG. BSI is set up in the west indies and doesnt appear to clear thru FINRA or CBSX. Unless there are tax advantages trading with them or if your Finra licenses have been revoked, Id stay away. No advantage compared to a US prop firm and tons of capital risk. I mean you could put up 5k here in the states at a prop firm and get around the 25k rule. Do they register with any kind of financial authority there? Any insurance on deposits?
The reason people get attracted to these unregistered firms is the work-around the series 56. At least that's why I did it. Silly, really. Just pass the test if you want your career to have any longevity.
Agree completely. Just take the 56 and go to a reputable firm. Most prop shops are giving 10-15 bp now anyway. There are great study materials now for the 56 and everybody is passing. First wave had it tough though lol. Those study guides in the beginning were not very efficient.
A couple of more good people stuck in the Series 56 nightmare, who are now having to study for the Series 7 to move over here. They "coulda woulda" taken the 7 to begin with, good everywhere. Don
Not completely true....the Series 7 is NOT a substitute for the Series 56. You might get a waiver if you have a 7 with trading experience but you will not get a waiver if you just take the 7 and expect to sign up with a 56 firm. As a matter of fact...the NYSE will soon only recognize the Series 56 for floor brokers, market makers, and specialists....it is not longer a "CBSX" exam. http://www.sec.gov/rules/sro/nysemkt/2012/34-67214.pdf