Hi, I was wondering are people able to open retail accounts (25k+ deposit) at a prop firm if they don't want to take any of the exams. If so, can they get better than 4-1 leverage as well as commissions similar to those of a prop trader?
You are subjected to Reg-T by the exchange, so your answer is no. Commissions vary depending on who you deal with. Portfolio margining is the best a retail trader can get. I caution you though, many traders blow out their accounts not understanding how it’s calculated. Go visit https://www.theocc.com/risk-management/rbh/ Prop firms deal in net capital requirements and risk based haircuts. If you don’t understand these concepts, you are not ready to trade for a living. Now I’m not going to go further, but you might want to study up before you click a button.
No such thing at as a retail account at a prop firm. You either join as a registered person or open a "customer" account with a broker like us. With $25K the most you can get is up to 4X for DT, and your account must stay over $25K.
To me the exam is not the challenge. Anyone that tries hard enough should be able to pass. I'd be concerned about: Commingling my money with strangers 1 year lock of my money Being part of a regulated broker dealer as a partner where you can be associated with their wrong doing Requirement to get their permission for outside businesses I did it once and was not happy. Bob
I've found when hiring that sometimes it's not the exam itself. It's occasionally a regulatory history.
Don't get me wrong you really have to do your DD on firms. But I have seen many individuals on forums looking for offshore prop firms and mention avoiding licensing.