90% of prop traders may not survive retail, but the issue would not be commissions, fees or platforms, IMO. The issue would be leverage for most of them. In fact, if leverage were not an issue, I think most traders would be much better off trading retail and not prop.
I can't really comment on that because its really on a case by case basis. The only isssue is this, I was told directly from the SEC that deposits are a no no and if there is a deposit, it is to be treated as a customer/client relationship.
Some other LLC is offering the following deal: 5000 down i.e. capital contribution. and 85% pay out Firm also takes the both the profits and losses up to 15% They are doing this to circumvent the Reg T, I guess... Would this work out? OR is this still a risk?
No, this still won't work, as they are doing business still as a broker dealer w/o being registered. Without being registered you can't even collect commish. Although I do wonder this...Maybe someone has the answer. What if an LLC, opened a retail account didn't charge beyond the base rate with no capital BUT split the profits 50 50.... Any thoughts?