Lake Street, Capital Trading Group, and Broad Street Securities

Discussion in 'Prop Firms' started by JSHTrader, Mar 31, 2011.

  1. Traders... I've searched ET and havent found much on both. Any info would be great. I know Broad Street Securities is a member of the CBOE, but CTG isn't.

    Would you feel more comfortable with a brokerage who is with the CBOE instead of a private company?

    Anything on either of these three groups would be great. Thanks.
  2. cstfx


  3. Either way, your $$ is not SPIC insured. All you'll get from a registered broker is higher fees. These same "registered" broker-dealers provide executions for the non-registered firms under international off-shore accounts that can not be regulated.

    Other than that, if you go with a registered firm, you will have to sign a u4 registration form and get finger printed. This is required of all members with CBOE firms.
  4. It depends on what you're looking for. Those of us who traded with Team Trading (a private company) had a rude awakening when the firm suddenly shut its doors last March and failed to return almost $2 million of traders' deposits (although some of us have now received our capital back, after almost a year later and after many complaints filed with SEC and NYAG).

    If you ask CTG for their contract (which a fellow trader sent me), it's written almost VERBATIM with the Team Trading contract! Granted, CTG may be run by honest people who have no intention of closing shop with your funds (I'm not familiar with them so I can't comment on how they operate, other than what they claim on their site, which is a private LLC and not a brokerage).

    A registered firm files monthly reports with their SRO (self regulatory organization, such as the CBOE or FINRA) so at least there is some oversight regarding capital contributions, whereas with an unregistered firm you probably won't have access to their financials or know about how they spend their money.

    Either way, what the op said is correct, the funds are not SIPC insured (unlike a retail firm), so it's a matter of which firm you trust, and whether you want to deal with all the paperwork and filing requirements of joining a registered firm (U4, FBI background check, fingerprints, etc).

    There are pros and cons with both types of firms, fees should not be the main concern, but rather the integrity of management, and doing business with a firm that you're comfortable with.
  5. Interesting point. Broad Street (the registered firm) seems to have a very similar street address as CTG (the unregistered firm).

    Not sure if that's simply a coincidence and they are wholly separate or if in fact they're connected by the example you provide above.
  6. The thing is, you can't really judge affiliation based on address. if you look up that address (50 Broad St.) you find wang investments, broad street trading, capital traders group, sogotrade, genesis trading, assent trading, noble trading, broadway trading, and those are just the names with "trading."

    This probably has to do more with the fact that the address 30-60 Broad St. are on the same block as the NYSE. there are A LOT of prop firms and brokers in those few buildings providing their clients really fast execution time. Most of these firms are using Stealth or Sidera Networks for fiber connectivity straight to the exchange (around 1500-2500 a month)
  7. CQNC


    You're a rat, Joe. Seriously. Always sniffing into everyone else's business since you got fucked by Tuco or whomever it was. Go back to being a CSR at Schwab. Straight up. Moron.
  8. I have a feeling why people keep asking about the newest "fly-by-night" of the day. These unregistered firms come on the scene and offer a deal you can't refuse. Then they jack you with higher fees and run off with your money. Lake Street Trading is the latest. They are an unregistered Tuco firm that will probably be shut down.

    Stick with firms that have been around for a few years and that traders trade on the CBSX or a different exchange. Good examples are:

    Bright Trading
    Echo Trade
    JC Trading Group (Disclaimer: I traded with them a few years ago and had an amazing experience with them)
  9. No, Joe is not a rat. He got burned and spent time being informed. If an unregistered group feeds off a registered group, tell me how, in the end, they can provide a better deal than the parent (and if they can, why that relationship would last).

    STEER CLEAR OF UNREGISTERED groups, since there are plenty of registered ones.

    Plus, since some of these postings are months old, CTG traders, apparently a sub of WTS now, are going to need prints and tests.

    The only ones who should stop their trading careers on account of this are felons and morons, and neither should be trading prop, which is the regulators aim.

    To an earlier poster, JC Trading is an unregistered BD by the way, so ask A LOT of questions before touching that.

  10. Wrong....All of JC Trading Groups's traders trade on the CBSX. Please check your facts before posting.
    #10     Sep 14, 2011