Question regarding Customer Account?

Discussion in 'Prop Firms' started by proptrader11, Jun 29, 2010.

  1. Let's say I have an LLC with a registered broker-dealer and this LLC is a customer account $25,000.

    1. Am I allowed to receive overrides on traders if they trade through my LLC customer account?

    2. Would traders be able to trade excess leverage then 4 to 1 through a customer account in any case?

    3. What are the rules/regulations regarding having a customer account LLC (trading group) even if I have my series 7 license.

    4. Is this even legal?

  2. From my perspective, not legal advice:

    1. No. and they cannot have "customer" accounts, neither can you. No "customers."

    2. See number one.

    3. See number two, LOL.

    4. No

    There are legal ways to work with a trading group, but now how you outlined. I can't go into here of course.