Mutual Fund vs. ETF

Yes.

Also, If you find it..... you owe me $2,000.00. But, I’ll take a JW blue and a few nights in NYC.

 

I assume to implement this arb you have to be a broker dealer since that restriction is for BDs not customers.

 

Not exactly, a professional customer can also use it. Clearly, you’re going to have to be registered, licensed, and with a firm that has access to haircut margin, not PM.

But, if you can’t do that..... why are you trading in the first place?

I’ve always said retail doesn’t make money, they give it away.

 

What pro firms are left standing? Only Bright trading right?

 

I believe Kershner Trading in Austin, Tx.

Chimera securities, I haven’t recently spoke with but they might help.

First NY securities, first choice if you can qualify and get ahold of them.

I have others but I don’t know anyone who works there so I really couldn’t help.

I don’t trade with any of the above so I can’t really give advice on it, but it is the RBH you are after, not the leverage.
If you don’t know the difference, you are not ready to trade.

I trade through a prop B/D. It does not take any customers, we deal only in our interests.

 

Well I'm out of my depth here. If you don't mind, can you explain what RBH is?

 

Risk based haircut. For customers there is PM but not all securities are PM eligible and not all baskets are provided offsets.

None of this has anything to do with the question asked.

 

Got it.

 

I’d start my own thread, but I’d rather just PM.
Excuse my input.

 

I'd go with ETFs. You can choose 0-cost brokerage, so you don't have to pay trading fees. If you invest with Vanguard, they can do automatic capital gains and dividend re-investments for you. Big advantages of ETFs are: 1. cost and 2. tax efficiency. Even some basic mutual funds can be very expensive (e.g., compare VGTSX to VXUS).