Discussion in 'Prop Firms' started by Angiedq, Nov 7, 2006.

  1. Angiedq


    I am new and have read most of the post in this forum but still have a very basic question.

    Does on need to register (series 7) as a broker/dealer to work with a prop firm. I am interested in joining a firm but am not willing to go through the registration process.

    This is a great site and thanks in advance for any input.
  2. Since 1998, it has been a requirement to trade using capital (above PDR 4 to 1), and to have direct routing to an exchange, that traders have a Series 7 license. The SRO of a particular firm may choose to over-ride that (temporarily, I'm told), but there are very few firms who allow traders without S7 (as I said, temporarily anyway). Retail firms do not require S7, but are stuck with the inherent limitations.

    The "Non-Broker Dealer" "Non Registered" "Non member" firms who let you come in and daytrade are the firms to be the most cautious of. These firms are not exchange members, non NASD members, basically non-regulated operations.

    Wherever you go, be sure to do your due diligence.

    and, besides, the S7 is not a big deal....every "stockbroker" has passed the exam, how tough can it really be, LOL.

    All the best,