Sounds like they are just using the prop firm disguise. And they aren't "really" a prop firm. A real prop firm would make you get a series 7 to avoid liability. These firms you are talking about are brokers pretending to be prop firms. The firms that claim they are prop firms and give you extra leverage are just loaning you money to trade with and they expect you to trade a certain amount of shares every month to run up your commission fee's. The more you trade the more they earn in commissions. If your account goes below a certain amount of money, then they shut you off. So they lose nothing and gain everything by loaning you money. For instance, if you go into a prop firm with 5K of your own money and they give you 20 to 1 leverage, so you have 100K to trade with. They won't let you just trade 100 shares a day and go home. It is not profitable for them. They will expect you to trade 100,000 shares a day so they make commission off you. And if you lose your 5K in one day, then you either come up with more money or go home. But they still got their commission off you. And they take it out of your account automatically. HLV is famous for this. They are a broker disguised as a prop firm. They tell you what stocks to trade. The stocks you have to choose from are mostly penny stocks under 5.00 per share such as LU. They tell you to trade 100,000 shares at a time. Then they commission money off you when you sell those 100,000 shares. So you are now in 200,000 shares worth of commission. They won't let you trade 1000 shares a day and go home. Stay away from prop firms that don't make you get a series 7. They are not really prop firms. They are brokers in disguise. But so are the ones that make you get a series 7, but at least they are regulated so if something goes wrong, then you can file SEC reports on them. And things do go wrong.
I understand what you're driving at - I have been a prop trader since 2002 and am quite familiar with the industry. And no, the firm I was referring to did not require that I trade a minimum amount of shares/day nor did they require that I only stocks from their list. I raised the question since I was mystified by the fact that experienced, S7 licensed traders have been flocking to this firm even though it is not a registered BD. Just curious, that's all.
Is it a vegas firm? Because there are only two prop firms in vegas that I know of. And one is series 7 and the other isn't and nobody is flocking to the that isn't. They are having a problem keeping traders.