Prop firm owned by clearing corp

Discussion in 'Prop Firms' started by Weasel, May 5, 2004.

  1. Weasel

    Weasel

    Would you join a prop firm owned by the firm they clear through? I'm talking about Echotrade who is owned by PAX Clearing. I recall Don Bright saying not to join a firm that was a sub llc or not willing to give you financials.
     
  2. Nordic

    Nordic

    I don't think this is "sub llc" situation. The ownership of Pax may "hold" an interest in the Pax broker dealer, and If anything I would think that adds value. Anyway " Don the Lurker" should be chiming in soon with his two cent spin on this
     
  3. Nordic

    Nordic

     
  4. haha you listen to bright, he always talks about "check financials etc.." but you can ask him directly what he thinks about hte financial state of echo. Most likely the financials he actually shows you is probably from back in the dot.com days. LOL. If he says echo is very solid company, one of the few along wiht bright that survived the dot.com crash, he is telling the truth. anyways you ask alot of questions my friend, tlak to much you should trade more.
     
  5. Well, I have been giving out my 2003 Audited Balance Sheets for quite some time now....(just to clarify to my regulators who read every post on ET).....

    I try to not to bash other firms, preferring to illuminate the facts as I know them...The PAX/VanBuren/Echo relationship has evolved over the years as money became scarce in the trading ventures...I don't really know a whole lot about PAX, but I do know quite a bit about the VB/Echo side...and I simply say that these guys are OK in the realm of things, especially Jeff and Rob at Echo...(perhaps a wrong path, but decent guys)....

    I apply the same simple rule to all questions like this..."check the balance sheets".....

    BTW, BT still keeps a minimum of $10Million to protect our traders.. and it's shown on the current balance sheets....

    (Hi Diane, just keeping the records straight)....

    Don (keeping things real)..Bright

    :)
     
  6. Do you have a seperate operating company from the trading LLC? Which balance sheet do you show?
     
  7. Send me an email with your name and address, and I'll send our 2003 audited balance sheet.

    Don
     
  8. I trade at Echo and have substantial equity there - and it is my understanding, from my own and some helpful due diligence by others, that PAX is extremely solid.

    Furthermore, the risk management at Echo is excellent - as I have been a recipient of it more than once! For example, just recently they added real time % leverage to every trade.... makes it easy on everyone to keep track of where you are.
     
  9. I must agree, Echo is very fair and good people. Despite Bright's opinion, your money probably as safe at Echo as with any prop firm.
     
  10. First, name is not an alias.

    Second, I am not looking to see the balance sheet as I am not a memb er nor seeking to be one at this time. I am just asking if you have a seperate operating company from the LLC and if so which BS is shown and relevant.

    Thanks.
     
    #10     May 7, 2004