It is unnecessary to have a Series 7 to be a member of an LLC and trade your own subaccount. A lot of firms require a series 7 because it is easier/cheaper for the firm to obtain intraday leverage for a licensed trader. LLC's that have deep pockets don't require traders' to have licenses because they have sufficient capital to provide the necessary buying power for their traders.
What do deep pockets and the law have to do with one another? If you are trading OPM you need a license period. If it is your money then there is no need for a license. Why do people make this shit up?
This is not exactly true either (I'm not saying you're wrong, bear with me)...a Broker Dealer (exchange member or NASD member) has the requirement for the S7 to allow traders to use the Firm's capital. For example, we don't need our traders capital for our Net capital calculations (which determines how much $$ all our traders can use)...and yet the Exchange requires a S7 license. Unregulated firms can simply have traders mingle capital with some of the firm's and have the traders sign waivers, and then give a POA or similar allowing to enter trades. As with most business ventures, some of these firms are fine, and some deserve some scrutiny. As always, due diligence is obviously more important with the non regulated firms (since there is no recourse to a governing body). (This is no reflection on SMB, since I haven't done my due diligence on them, I assume you're an exchange member). Don
Can I carry forword the K1 losses to next year as investment losses? Can I adjust my previous investment losses against the K1 income?
Surdo are you an idiot or what ? You don't need a Series 7 to trade Other Peoples Money. Do you actually think Hedge or Fund Managers and their traders are NASD regulated. Get a clue before you post.
This is my first year as a Prop trader with CyGroup and I just received my K-1. My question is do also have to break out my trades on a sched D along with entering the K-1? Should I do one over the other or both? Thanks Eric
They may not have a series 7 but a lot are registered as RIA's with FINRA depending on the state they are in. It depends on how you are compensated and who is the 'client'
They are pretty good to respond to your questions pretty fast and overall I thought they were good. Just don't expect much support on trying to figure out Laser. (not that I expected alot of help) Overall good.