I'm currently looking into joining Cy Group. However, I am new to the whole prop trading firm business (I am with Interactive Brokers right now, and was with Thinkorswim in the past). I read about the whole situation of what happened with Tuco Trading. Is Cy Group a similar type of business and in danger of being hit by the SEC as an unlicensed broker/dealer? Or is Cy Group safe given that they are a subset of Genesis (from what I've read). Any help would be much appreciated. I have read good reviews of Cy Group on this board.
My understanding is that CY Group is setup the same as Tuco was. CY isn't a BD, but they accept deposits and give leverage on the deposit and they make money off of commissions. Those are the three main points that the SEC said they went after Tuco for. Your safest bet is to go with a firm that requires a series 7 license, or open your own retail account.
but there's still tons of groups doing this like t-3. why did they go after tuco and not others? some llc's have gone offshore
The firms that require a series 7 license are all retail in disguise. The license thing is just a sham. They let you keep all your profits but make their money on commissions, just like retail.
I noticed a posting on here earlier (acutally on quite a few threads) about a BD that offers greater than normal leverage for unlicensed guys. It is too bad all of the postings seem to be gone now. I just wanted to say if they offer Lightspeed trading platform there is only ONE firm that does this and we've been with them since they started. I have nothing but good things to say about them and it's a great alternative to guys looking for a place post Tuco that is completely legal.
What platform do they use? The firm mentioned before offers great leverage and has Sterling or Lightspeed to unlicensed or licensed guys...
yeah i know the Genesis guys (Harry over there)--demoed that before. Laser is nothing like Lightspeed, but yes I agree it's better than Sterling.
ive been w/ cy for years. no problems yet. if i do run into one or find a better place, i will leave. don't believe a lot of the people on the forum. all the prop firms are out to get each other's clients. do your homework and trust in yourself.