prop firms series 7 not necessary

Discussion in 'Prop Firms' started by lou vail, Jan 23, 2006.

  1. lou vail

    lou vail

    Any prop firms that give good leverage without series 7 or any firms that give more than 4-1 ? thanx:)
  2. I think the nature of a prop firm requires you to have a series 7 and 4-1 leverage is RETAIL leverage- IB offers 4-1 intraday. So unless you are a newbie on tight reigns with the firms capital, you can always bget better than 4-1 leverage intraday at a prop.
  3. It depends on the SRO where the JBO is regsitered. I believe firms registered in CBOe don't have S7 requirements while NASD needs S7,s63, Pcoast firms need S7,etc. NO firm rules about licensing
  4. Can you explain this a little more? I've talked to 3 prop firms lately, 2 are on the west coast. Of those 2 on the west coast, only 1 required a S7 but they both offered 10:1 leverage. Isn't there something to do with how they are set up and how you are associated with them that determins if you need a S7 or not?
  5. Each JBO (i..e prop firm) by their nature has to have exch memebership . Some are mmebers of Pcoast, some are member of Chicago Stock Exch, some NASD. Each of these exchanbes have similar but not exact requirements. NASD firms I think need S7,S63. Chicago needs only S7, CBOE -nothing maybe just a release that each trader knows what he is doing,blah ,etc.

    I think firms that are members of CBOE don't need S7.In fact there are also retail firms which have enough $ in their account that they don't need the leverage offered by their clearing firm-i.e. use Reg T margin which means no licenses are needed since they are retail customer and not pros.

    If u don't want to test try calling CBOE member firms
  6. lou vail

    lou vail

    Any contact info would be appreciated you can pm me thanx
  7. I don't really have contact numbers other than what is posted ad nauseum here in the pro firms section. Look at the usual suspects-Assent, Bright, Echo, Hold. If you are really averse to taking the S7, you might also consider the retail LLC's which don't require licenses and are not JBO's . The firms that run these have a big chunk of "retail " cash with a broker and will allow you trade said account as a nominee. A simpler structure since paperwork is marginal which could also bite you in the event of a blowup.

    Other than an old fashioned retail account with your SIPC insured broker , there are risks involved in joining firms under a pooled capital structure so buyer beware. That being said, there are good benefits in joining these firms as well. So good luck