Question about leaving a prop firm

Discussion in 'Prop Firms' started by sweet&tasty, Nov 20, 2007.

  1. When you leave a prop firm can that firm allow others to use your old account? And if they did would you be liable for any losses in that account or taxes if the account was profitable?

    Are there SEC regulations against this? There must be for firms like Bright and Tuco where the person funds the account with their own money but what about firms like Swifttrade or Title where the trader does not use their own money?
  2. ToddP


    For a firm like Swift, the company is basically a collective whole for most SEC matters other than when a trader does something quite wrong. But for smaller matters they get the benefit of the doubt. I have heard of trainees going on guys accts and nothing would ever come of it. I guess the only thing would be if you went back and they had lost money then you would have to make some agreement but that shouldnt be a problem.