A prop firm is an entity that trades it's own money. If the traders are employees or limited or general partners is not important to the term prop firm. Most prop firms are broker dealers. A retail account is any account in an individual's name, not an entity.
+1 If a firmy makes a penny on your commisions it's Retail, if the firms makes only money when you make money Prop firm. Some prop take deposit some don't usually depends on the payout structure. Whats the name of the company all hate is directed at? Without it this thread is useless.
Again, I don't like the JBO model either. No one is made to join. I've asked this question before on ET threads. colin76, let's say the JBO was your firm. Your friends and family money, let's call it $5MM (Yes I know most have less, many have more.) Your overhead, your compliance, your risk. You are going to run your Broker Dealer to make money for you and your investors which took you around one year to put together and get licensed and make a deal with a Prime Broker. What deal would you offer traders?
You are getting all your models confused. Futures firms don't take deposits, equity firms do. Completely different business models. And the futures firms take a cut because it's THEIR money.
Because no one wants to trade 500k shares a day on IB's pos platform. And half the guys on ET don't have the 30k to get around the pattern day trader rules. Once again, the equity model is different then the futures model.
Def this. People trade with props to get around the PDT rule and cuz their routes t Better than retail brokers. That's pretty much.