Quite the cerebral response, clearly, you don't have a clue or you may just not like facts, I'm undecided. Topics to brush up on: Series 57 https://www.finra.org/industry/series57#permitted-activities Series 63, Series 65, Series 67 Caymans http://www.eurekahedge.com/Research/News/1386/03oct_archive_hedge_fund_cayman https://www.nytimes.com/2007/07/01/business/worldbusiness/01iht-hedge.1.6429939.html Run along now.
Yes US has strict regulations to reduce the scams.. - Once your risk deposit money goes to Cayman ! wonder how it is protected! - don't take Canadian residents.. another red flag I wonder why ? may be some issue with the regulators!
Proprietary firms don’t accept deposits, that's a broker your thinking of. Smart money doesn’t like to take risks. If the Cayman Islands is the worlds no 1 location for Hedge Funds and the 5th largest financial centre in the world. It's a highly regulated, highly safe and a very stable environment. No, Canada just like the US has its own laws. They are clearly respecting and adhering to the law of different countries like any reputable firm would.
Proprietary firms don’t accept deposits..! I am talking about the "First Loss" performance bond deposit that is required which goes in to place like Cayman island! "A Performance Bond is there to offset any losses..." https://www.traderequity.com/faq.php and you are saying customer protection laws in places like that ARE BETTER as compared to places like UK or USA You got to be kidding when you make claims like "They are clearly respecting and adhering to the law of different countries " Reality of such "Firms" is ..they don't want to BE scrutinized by regulators like FSA in UK or SEC in USA
Your working knowledge is staggering, considering how opinionated you are TraderJo. Prop firms from my experience are normally hedge funds or asset management firms. Brokerages have customers, take deposits and the customer trades their own money. Prop firms have employees or contractors, don’t accept deposits and the trader trades the firms money. If your trading 1, 2 or 10 million plus your typically a professional trader and an employee or independent contractor, not a “customer”. TraderEquity doesn’t require a performance or risk bond at all. It's only if you don’t have an extensive validated trading history that they may ask for a very very small bond to prove your profitable live before giving you access to their capital which is just intelligent. Just so your aware a bond is different from a deposit legally. I’m not kidding at all, Caymans like a lot of these places is highly scrutinized and regulated more so than the onshore now. Ever since the CRS and all the KYC/AML regulations, everything is very transparent. This is why all the smart money is there. The FACT is that its nearly impossible to run a legal prop firm in the UK or EU due to the MIFID ii regulations. In the US you just need to take the exams as mentioned before.
1) The link doesn't say that at all, it simply tells you what a performance bond is. Below that it says what do I need to join and it doesn't say a performance bond. You've failed to interpret a basic fact. 2) You talk again about the consumer but have failed yet again to grasp the difference between a professional/retail trader. 3) I have no idea what Bright was if it was legitimate or not/retail or professional. 4) Yes. The Cayman survives due to that reputation to attract smart money. 5) Again, Its nothing to do with that scrutiny. Its the legal frameworks. Dodd-Frank in US and MIFID ii in EU. Retail firms need to be registered as brokers. Professional firms are highly regulated with solid legal structures in place due to the vast amount of capital they are handling. I have no idea about DTTW or SWIFT and how they are structured. All I can tell you is the UK & EU laws are the same as part of the EU. If the traders were consumers the firms are then brokers and would require a brokers license. Yet again failing to understand the difference between a professional hedge fund or asset management firm and a retail broker.
I got the facts wrong! In plain English once again "A Performance Bond is there to offset any losses or data/software costs when trading the companies capital. ...The Performance Bond is only refundable if the traders account is NET positive at the time of closing the account. " So simply a First Loss type of funding / leverage, nothing wrong with that, but that means one has to send money offshore first. It is not Pure Prop model where you dont have to send any money anywhere and get selected based on your talent in either trading or programming quant etc You say I am mixing Retail Broker/ Prop firm If there is no first loss involved then there is no issue the "Trader consumer" has nothing to loose apart from his her time. then if they are based in Zanzibar or UK who cares! Many props firms have trading offices in countries where the cost of talent is cheap ( India for example https://www.futuresfirst.com/) They don't charge any money to traders wishing to join it is simply a performance based job so the issue of regulation becomes mute. As soon as Trader money is involved regulatory aspect becomes important and that is my point but I guess you want people to ignore that! Why you think US regulators have this restrictions of various exams on traders joining + the firm has to be a Licences Broker dealer ( I believe in Equity space) In order to stop unscrupulous business starting so called Prop firms based on First loss You say "I have no idea what Bright was if it was legitimate or not/retail or professional DO a search on this forum for Don Bright It is a US based legit firm ( I have no association with them just giving an example) https://www.stocktrading.com/index.php/bstepstrader Any way if you want to peddle such such thinly regulated prop and have a last word to win the argument go ahead, you win