I just want to add in here that I have been with them since January and started trading in March. It took me about 3 months to turn the corner and become profitable. I am advancing in share in size and possibly see making a reasonable income in about 6 more months. As far as a scam I am not making promises about the future but they have been good for me so far.
They dont accept deposits. You'll have to take the Keystone training program which is about 4k USD and may after that apply for a position as a trader.
Hmmm...similar to a deposit, wouldn't you say ? What happens if you are NOT accepted after spending the $4k on the training ?
I don't know any details since I'm not a trader there. But they dont make any money on commissions and don't accept deposits. A deposit placed at a prop shop would be still your money. If you pay a fee for training the money is gone forever. That is the difference. Additionally they share profits. With these 3 points they make sure to satisfy the SEC and get around the PDT rule, since you would be not a retail trader at Keystone, but kind of an employee.
The latter provides them with a low risk income; the deposit can be garnished only if the trader is lousy. They file/issue a 1099 for each trader then ? If so, what really interesting is the ESTIMATED TAX payments. Given the risk, a trader could go from a hugely profitable quarter, to a losing one. This fact makes the estimated tax filing nearly impossible to get "right". I wonder how the IRS would view this situation ?
Well this thread is getting sidelined, but i have paid quarterly taxes as a pro poker player for a few years now, and you have the option of paying quarterly on actual income, not estimated. Thats what I do, makes the most sense for a gambler/trader. Don't ask me the specific rules or anything, my tax preparer does it for me.